People attend a debt mediation fair held at Impact Muang Thong Thani last year. (Photo: bangkokpost.com) Bangkok (VNA) – Thailand has kicked off a debt suspension and relief programme for small and medium-sized enterprises (SMEs) as part of the government's commitment to address the problem.
According to government spokesman Chai Wacharonke, the board of Thai Credit Guarantee Corporation (TCG), a state-owned specialised financial institution under the Ministry of Finance, recently approved the implementation of two assistance measures for SMEs.
The first measure calls for debt suspension for SMEs affected by the COVID-19 pandemic for 18 months. The scheme runs from January 1 this year to June 30, 2025. Eligible SMEs are those with overdue payments exceeding 90 days from the impact of COVID-19 in 2019 or non-performing loans as of December 31, 2023, covering individuals and juristic persons, as well as SME debtors participating in the debt restructuring scheme and assistance measures of the TCG.
The former are required to have a contracted amount not exceeding 10 million baht (about 285,000 USD) while the latter need to comply with the conditions of the programmes for three months.
The second measure calls for reducing principal by 15% from January 1 to June 30.
Chai said that the six-month measure is expected to assist around 5,000 micro or retail debtors to return to the system faster.
Thai Prime Minister Srettha Thavisin said previously resolving the informal debt problem, which he likened to modern-day slavery, is a national agenda item, requiring a series of measures. These measures involve various agencies collaborating with the Interior Ministry and the National Police Bureau to prevent unregulated lending.
Household debt is estimated to exceed 90% of GDP in Thailand. The government conservatively estimates informal debt at 50 billion baht./.
