BANGKOK, Thailand – The government has introduced a debt restructuring plan to assist individuals with non-performing loans (NPLs) of 100,000 baht or less. The policy is expected to help ease repayment terms for small-scale borrowers and help them return to the formal financial system. A dedicated agency will be established to manage the process nationwide.
According to Government Spokesperson Siripong Angkasakulkiat, the agency will acquire eligible NPLs from commercial banks and financial institutions that have already written them off. Debtors will then be invited to renegotiate terms. Options include reducing the principal, waiving interest and penalties, and extending repayment periods to make monthly installments more affordable.
The program does not cancel debt; rather, it restructures it in line with each borrower’s repayment capacity. Once the process is complete, debtors will have their credit records cleared, allowing them to access financial services again and rebuild their credit standing.
Officials estimate the plan could return hundreds of billions of baht into circulation, as restructured debts are gradually repaid and borrowers regain spending power.
The government has stated this is a one-time policy intended to resolve structural debt issues, not encourage future reliance on state assistance, noting that the goal is to give borrowers a fresh start while reinforcing financial stability nationwide. (NNT)
