Long-term debt resolution
Addressing the debt concerns of individuals and entrepreneurs by encouraging financial institutions to support debtors with targeted long-term debt restructuring.
The Covid-19 Pandemic
The COVID-19 had broad economic impact on businesses and individuals.
The affected entrepreneurs and individuals had lower income and were unable to service their debts properly.
The COVID-19 outbreak had a broad economic impact on businesses and individuals as economic activities and employment were disrupted and the social distancing policies were in place in an effort to slow down the pandemic.
The affected entrepreneurs and employees had lower income and were unable to service their debts properly.
In addition, the COVID-19 outbreak created volatility in financial markets around the world. It also caused tight liquidity in the Thai financial market, which affected the funding mechanism of the businesses.
The Bank of Thailand (BOT) has continuously implemented financial measures to assist debtors, covering all types of debtors such as retail consumers, SMEs and large businesses.
The measures have been designed and adjusted to match with the Thai context and to cope with specific problems arising during the development phases of the pandemic covering debt resolution measures, liquidity support measures , and measures to maintain the stability of the Thai financial market.
During early stage, the BOT responded with broad-based measures in a short-term to alleviate extreme conditions and to address immediate challenges.
In later stage, with prolonged condition and uneven recovery (K-shape), more targeted measures were implemented so that sufficient resources were allocated to help those who were severely affected.
