Central Bank Sets Floor for Pandemic Debt Support

The Bank of Thailand has set guidelines for minimum assistance that financial institutions must offer to debtors to ease their financial burden amid the pandemic, effective from April 1, the Bangkok Post reported. Veerathai Santiprabhob, the central bank's governor, said the coronavirus outbreak has affected individuals and small and medium-sized enterprises (SMEs) on a far-reaching scale, leading to the need for a guideline. "A policy rate cut is insufficient to help borrowers," he said. All lenders, comprising commercial banks, specialised financial institutions (SFIs) and non-bank and leasing companies, are required to comply with the guidelines covering six types of loan product: credit cards; personal and car title loans; auto and motorcycle loans; machinery leasing; mortgages; and SME, nanofinance and microfinance loans. Read more