Central bank and 16 banks join hands to address household debts

The Bank of Thailand, in cooperation with 16 commercial banks, the Thai Bankers Association and Sukhumvit Asset Management Company, have signed an agreement of cooperation to help solve household debts of individuals who do not have guarantee.

Debtors who have fixed salaries and who have incurred debt for the use of credit cards or who have debt from quick cash service for more than three months or who are indebted to at least two financial institutions of up to two million baht are eligible to apply to get help through refinancing.

Debtors will be charged a maximum of seven percent interest rate and they can repay their debt up to seven years.

BoT governor Veerathai Santiprapob estimated that about 150,000 debtors will enter the refinancing programme.

Details about the programme are being worked out, but debtors who are interested to join the programme can contact Sukhumvit Asset Management Company as of June 1.

Household debts as of last year accounted for 79.9 percent of GDP.