Bank of Thailand Supports Credit for Debt Scheme Users
The Bank of Thailand is allowing banks to provide credit to borrowers in debt restructuring programmes to support their liquidity amid slow income recovery. They have also extended the minimum monthly credit card payment rate and allowed higher loan-to-value mortgage ratios. These measures aim to balance household debt issues with financial relief for borrowers.
The Bank of Thailand (BoT) is allowing banks to continue granting credit to retail borrowers in debt restructuring programmes to support their liquidity amid slow income recovery.
Somchai Lertlarpwasin, assistant governor for the financial institutions policy group, emphasized the importance of liquidity for vulnerable borrowers.
The central bank has relaxed loan regulations, extending the minimum monthly credit card payment rate at eight percent until the end of 2025 and allowing banks to maintain credit lines for cardholders.
Mortgage loans with a loan-to-value ratio higher than 100% are also permitted through debt consolidation.
These measures aim to balance household debt issues with financial relief for borrowers.
The PD solution programme, introduced in April, encourages struggling borrowers to seek debt restructuring.
Somchai Lertlarpwasin, assistant governor for the financial institutions policy group, emphasized the importance of liquidity for vulnerable borrowers.
The central bank has relaxed loan regulations, extending the minimum monthly credit card payment rate at eight percent until the end of 2025 and allowing banks to maintain credit lines for cardholders.
Mortgage loans with a loan-to-value ratio higher than 100% are also permitted through debt consolidation.
These measures aim to balance household debt issues with financial relief for borrowers.
The PD solution programme, introduced in April, encourages struggling borrowers to seek debt restructuring.
