Two new emergency decrees — one on the reduction of default interest rates and another to provide assistance worth 350 billion baht to business affected by Covid-19 — came into effect on Monday.
Deputy government spokeswoman Rachada Dhnadirek said yesterday the decrees were aimed at relieving the debt burden of entrepreneurs and protecting them from unfair interest charges in light of the pandemic.
Published in the Royal Gazette on Saturday, the first emergency decree — which amended the Civil and Commercial Code — was designed to prevent creditors from charging unfair interest rates by abusing ambiguities in the old law.
Some creditors have forced debtors who missed a repayment to pay interest on top of the principal amount owed, as the old law did not set out the default rate.
Ms Rachada said the old law, which had been in use since 1925, no longer aligned…
