Farmers with outstanding debts at the Bank for Agriculture and Agricultural Cooperatives (BAAC) in Thailand can now enter a debt suspension scheme without the need for prior debt restructuring, according to Paopoom Rojanasakul, the secretary to the finance minister. The move aims to help these farmers regain their good debtor status and is applicable to all BAAC debtors whose total outstanding debt does not exceed 300,000 baht.
Previously, there was a misconception that debtors with non-performing loans (NPLs) had to undergo debt restructuring before they could be eligible for this programme. To encourage these debtors to regain their regular debtor status, the government will cover their interest payments for a period of three months. This strategy is expected to significantly reduce the number of NPLs at the BAAC.
Paopoom went on to explain that the monthly instalments from these…
