By Kitiphong Thaichareon
BANGKOK (Reuters) – Thailand is planning measures to sort out family debt together with a suspension of curiosity and lowered principal funds on some dangerous money owed, the finance minister mentioned on Friday.
Below the proposals, debtors with money owed which are overdue by between one and 12 months would obtain a suspension of curiosity for 3 years and a 50% discount of principal funds, Pichai Chunhavajira instructed reporters.
The measures, which shall be mentioned with the Bankers’ Affiliation afterward Friday, would additionally embrace extending the compensation interval and permitting banks to contemplate granting new loans, he mentioned.
“This group’s debts can be resolved,” he mentioned, including money owed overdue longer than a 12 months could be tougher to sort out.
Pichai mentioned industrial banks had agreed with the measures in earlier discussions, and added the ministry would take into account serving to with banks’ bills if the proposals had been accepted.
“The proposals to solve the debts will help retail debtors restructure their debts and have more access to credit,” Pichai mentioned.
Thailand had a household-debt-to-GDP ratio of 89.6% on the finish of June, with family debt at 16.3 trillion baht ($482 billion), among the many highest ranges in Asia.
The excessive debt has restrained consumption, weighing on development in Southeast Asia’s second-largest economic system, which has lagged its regional friends in recent times.
Pichai additionally mentioned he would talk about an easing of loan-to-value guidelines with the central financial institution to assist the property sector.
($1 = 33.84 baht)
