Export-Import Bank of Thailand (EXIM Thailand) is poised to extend the two-month debt relief period that began last month for its customers until the end of the year to ease their burden from the impact of the pandemic, said the bank's president Rak Vorrakitpokatorn.
A screenshot of Mr Arkhom during his keynote speech.
Financial institutions should consider if the Bank of Thailand s move to suspend principal and interest payment for two months should be extended to provide more breathing room to small and medium-sized enterprises (SMEs) this year and next as the pandemic s impact has been severe, says Finance Minister Arkhom Termpittayapaisith.
He made the remarks during a keynote speech yesterday at the launch of the World Bank s Thailand Economic Monitor July 2021 The Road To Recovery report.
Mr Arkhom said because the Thai economy is not expected to recover quickly, banks and lenders will have to monitor the situation and consider if debt suspension should be longer than two months.
Deputy Bank of Thailand Governor Ronadol Numnonda
A ceiling rate cut for consumer loans would not be a holistic solution to help ease the debt burden of individual borrowers, says an executive of the Bank of Thailand.
The central bank has been studying cutting the ceiling rate for some consumer loan products to lower the financial cost for retail borrowers. The bank needs to consider the pros and cons of the option, said deputy governor for financial institutions stability Ronadol Numnonda.
Even though a ceiling rate cut would reduce borrowers costs, it might push some of them out of the financial system, he said. Lower interest rates will draw in more loan applicants, and some might be rejected if they do not have good repayment capacity. This could lead them to look for a loan shark, which often have unreasonable rates, said Mr Ronadol.
1 The Pathumwan intersection and its skywalk is void of traffic and people during the lockdown hours in the capital. Pattarapong Chatpattarasill
The Bank of Thailand is allowing a two-month debt holiday for individuals and small and medium-sized enterprises (SMEs) suffering a direct impact from the government s latest lockdown measures to combat the pandemic.
The measure, which includes the cooperation of the Thai Bankers Association and the Association of International Banks, targets employees and employers in 10 provinces who have temporarily closed businesses as a result of the tighter lockdown measures.
This measure starts with monthly debt payments for July.
Borrowers who want to apply for this debt suspension measure can contact creditors from July 19.