Thai Airways International Pcl on Wednesday said it appointed board members as rehabilitation planners in a bankruptcy court submission, Reuters reported. The court accepted the airline’s request for bankruptcy protection earlier in the day, setting the first hearing for August 17. It gave creditors until three days before then to submit objections. The rehabilitation committee comprises the flagship carrier’s chairman Chaiyapruk Didyasarin, acting president Chakkrit Parapuntakul and three newly appointed board members, including its former CEO, Piyasvasti Amranand.

The Bank of Thailand cut its benchmark interest rate to a fresh record low and said it was ready to use additional policy tools if needed with the economy expected to shrink further. By a 4-3 vote, the central bank lowered the policy rate Wednesday by 25 basis points to 0.5%, its third cut this year, Bloomberg News reported. All but three of 24 economists in a Bloomberg survey correctly predicted the decision, with the others expecting no change.

Thailand’s cabinet approved a plan to restructure troubled Thai Airways International Pcl’s finances through a bankruptcy court, the Southeast Asian country’s prime minister said on Tuesday, Reuters reported. The plan for a court-led restructuring of the national carrier replaces a previous proposal of a government-backed rescue package that was heavily criticised in the country. The airline’s troubles are the latest example of how the coronavirus pandemic is crippling the global airline industry.

Thailand’s government said on Monday it plans to submit a rehabilitation plan for troubled national carrier Thai Airways International Pcl to a bankruptcy court rather than go ahead with a planned rescue, Reuters reported. “The State-Enterprise Planning Office agreed in principle for the rehabilitation of Thai Airways in court ... the procedure will be submitted to cabinet tomorrow,” government spokeswoman Narumon Pinyosinwat said.

Months of concern over rising Covid-19 infection levels may be secondary for investors in coming days as market-moving events and policy decisions take center stage, Bloomberg News reported. China’s annual National People’s Congress starting Friday will likely keep volatility suppressed for developing-nation currencies, despite the prospect of another flareup in tensions between Beijing and Washington.

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.

The Bank of Thailand has demanded all financial institutions continue providing seven financial services, including deposits, money withdrawals, fund transfers, payments, cash management and settlement systems, in an effort to avoid potential coronavirus-related disruption, the Bangkok Post reported.

The poorer debt serviceability seen earlier among small businesses is spilling over to medium-sized enterprises, suggesting more vulnerabilities in the financial system, according to the Monetary Policy Committee (MPC) meeting minutes from earlier this month, the Bangkok Post reported. Risks in the period ahead have increased as a result of the coronavirus outbreak, delayed government spending and the intensifying drought, the MPC said.

Krungthai Bank (KTB) could be required to set aside higher loan-loss provisions to deal with a potential bad-loan uptick this year as the deteriorating debt-servicing ability of clients is further hit by the sagging economy, the Bangkok Post reported. The bank has implemented several financial assistance measures, including debt restructuring required by the Bank of Thailand, to keep customers afloat during this difficult period, and these aid measures could weaken the bank's asset quality, said Payong Srivanich, KTB's president.

The Bank of Thailand cut its benchmark interest rate to a record low as the coronavirus outbreak, a stalled government budget and bad drought imperil economic growth, Bloomberg News reported. The central bank lowered the policy rate by 25 basis points to 1% on Wednesday in a unanimous decision, the third cut in its last five meetings. Fourteen of 29 analysts in a Bloomberg survey predicted the decision, with the rest expecting no change. “They have come to terms with a continued slowdown this year.