Thailand: Banks join hand to address household debts

Thai banks join hand to address household debts (Source: http://englishnews.thaipbs.or.th)

Bangkok (VNA) - The Bank of Thailand (BoT) have signed a cooperation agreement with 16 commercial banks, Thai Bankers Association and Sukhumvit Asset Management Company to solve household debts without guarantee.

Debtors who have stable salaries, incurred debts for the use of credit cards, have debts from quick cash services for more than three months or are indebted to at least two financial institutions with a debt of up to two million baht are eligible to apply for help through refinancing.

Debtors will be charged a maximum of 7 percent interest rate and they can repay their debts in seven years.

BoT Governor Veerathai Santiprabhob estimated that about 150,000 debtors will enter the refinancing programme.

Details about the programme were announced, and debtors who are interested to join the programme can contact the Sukhumvit Asset Management Company as of June 1.

Household debts accounted for up to 79.9 percent of Thailand’s GDP last year.-VNA

VNA