GSB asses terms for informal debtors in Thailand’s debt relief bid

Deputy Finance Minister Krisada Chinavicharana announced that the Finance Ministry has tasked the Government Savings Bank (GSB) with reassessing conditions for informal debtors. This move is part of the government’s steadfast resolution to address economic issues, especially those concerning formal and informal debt.

The responsibility of registering informal debtors and facilitating negotiations with informal lenders has been given to the Interior Ministry. So far, 400 informal debtors have been transferred to the GSB for debt restructuring.

Krisada highlighted that some informal debts escalate into non-performing loans (NPLs) within the formal financial sector. Additionally, some debtors find themselves on the National Credit Bureau’s blocklist, which bars them from securing loans from financial institutions.

As per the Bank of Thailand’s regulations, institutions are…