Finance Ministry reveals approach to tackling formal indebtedness

The Ministry of Finance unveiled details of its plan to solve formal debts today. 

Dr Paopoom Rojanasakul, secretary to the finance minister, said formal debtors seeking state help will be divided into those affected by the COVID-19 pandemic, those who have permanent incomes but are overloaded with debt, debtors who have uncertain incomes and debtors whose loans have been non-performing (NPLs) for a long time.

The first group can seek help from the Government Savings Bank (GSB) or the Bank of Agriculture and Agricultural Cooperatives (BAAC).

SMEs affected by the COVID pandemic and have incurred debt of not more than 10 million baht with state banks can seek refinancing with the GSB, BAAC, Government Housing Bank (GHB), Islamic Bank, SME Bank, EXIM or Thai Credit Guarantee Corp (TCG). Their debts will be restructured and they will be entitled to suspension of principal repayments…