Bank of Thailand Prepares Second Phase of Debt Relief to Support Household Financial Stability
Expanded 'You Fight, We Help' program to offer lower interest rates, debt restructuring, and broader borrower support
The Bank of Thailand is preparing a second phase of its 'You Fight, We Help' debt relief program, aimed at easing the financial burden on households.
The central bank is introducing three expanded measures: a scheme to help borrowers maintain assets while restructuring debt, a revised 'Pay, Close, and Be Done' initiative raising debt ceilings for settlement, and a new program to restructure unsecured loans for borrowers with smaller credit lines.
Under the updated program, eligibility has been broadened to include borrowers with overdue payments exceeding one year, those with minimal delays, and individuals who underwent debt restructuring since early 2022. The Bank of Thailand estimates around one million borrower accounts, totaling three hundred eighty billion baht in debt, could qualify for the asset retention scheme.
The 'Pay, Close, and Be Done' initiative will now allow settlements of unsecured loans up to ten thousand baht per account and secured loans up to thirty thousand baht for vulnerable groups.
Partial repayment thresholds have been lowered to encourage participation, and credit bureau coding will be updated to facilitate financial recovery.
Additionally, the restructuring of unsecured loans will offer non-performing borrowers the option to convert debts into low-interest term loans, freezing interest and directing monthly payments toward principal.
After three years, borrowers could see significant debt reductions.
Approximately nine hundred thousand individuals with debts totaling sixty-one billion baht are expected to qualify.
The Bank of Thailand has extended the registration period for the initial phase of the program to June 2025 and is coordinating with the Ministry of Finance and Cabinet for approval of the expanded measures.
The first phase registered one point six million accounts, with around five hundred thirty thousand borrowers currently eligible.
This second phase is part of ongoing efforts to strengthen household financial stability, support economic resilience, and maintain Thailand’s commitment to sound financial management amid global uncertainties.
The central bank is introducing three expanded measures: a scheme to help borrowers maintain assets while restructuring debt, a revised 'Pay, Close, and Be Done' initiative raising debt ceilings for settlement, and a new program to restructure unsecured loans for borrowers with smaller credit lines.
Under the updated program, eligibility has been broadened to include borrowers with overdue payments exceeding one year, those with minimal delays, and individuals who underwent debt restructuring since early 2022. The Bank of Thailand estimates around one million borrower accounts, totaling three hundred eighty billion baht in debt, could qualify for the asset retention scheme.
The 'Pay, Close, and Be Done' initiative will now allow settlements of unsecured loans up to ten thousand baht per account and secured loans up to thirty thousand baht for vulnerable groups.
Partial repayment thresholds have been lowered to encourage participation, and credit bureau coding will be updated to facilitate financial recovery.
Additionally, the restructuring of unsecured loans will offer non-performing borrowers the option to convert debts into low-interest term loans, freezing interest and directing monthly payments toward principal.
After three years, borrowers could see significant debt reductions.
Approximately nine hundred thousand individuals with debts totaling sixty-one billion baht are expected to qualify.
The Bank of Thailand has extended the registration period for the initial phase of the program to June 2025 and is coordinating with the Ministry of Finance and Cabinet for approval of the expanded measures.
The first phase registered one point six million accounts, with around five hundred thirty thousand borrowers currently eligible.
This second phase is part of ongoing efforts to strengthen household financial stability, support economic resilience, and maintain Thailand’s commitment to sound financial management amid global uncertainties.
