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BoT Extends Debt-Repayment Extension Until June

People sit in long lines as they wait to file complaints for not yet receiving the 5,000 Thai baht (150 USD) financial assistance for those whose income is impacted by the COVID-19 coronavirus outbreak, as others (front) file their documents, in front of the Public Relations Department in Bangkok on May 7.
People sit in long lines as they wait to file complaints for not yet receiving the 5,000 Thai baht (150 USD) financial assistance for those whose income is impacted by the COVID-19 coronavirus outbreak, as others (front) file their documents, in front of the Public Relations Department in Bangkok on May 7.

The Bank of Thailand on Monday extended its debt-repayment and interest-reduction measures until June to help debtors and alleviate their financial burden.

Following reports that Thai household debt reached record levels in the past quarter, the assistant governor for the central bank’s Financial Institutions Supervision Group, Thanyanit Niyomkarn, said the committee overseeing the Debt Clinic project had evaluated the measures in force from April to September this year.

The result was satisfactory, with 94 percent of its debtors having been able to meet their payment obligations. Only six percent of the debtors have received temporary suspension of debt repayment.

According to the committee’s forecast, the country’s economic outlook remains highly uncertain. As a result, the measures will be extended for nine more months, or until June 2021. Furthermore, the debt-relief measures will not affect their financial records.

As of September this year, the Debt Clinic project has helped some 8,300 card debtors. On average, each debtor has three cards, carrying a debt of about 240,000 baht each. At the moment, there are more than 900 debtors, who are waiting to sign an agreement, and another 1,200 debtors whose financial information is being examined by financial institutions. Over 10,000 people are expected to participate in the Debt Clinic project by the end of this year.