Two new emergency business loan support decrees come into effect

BANGKOK (NNT) - Two new emergency decrees related to the reduction of default interest rates and the assistance worth 350 billion baht to business affected by Covid-19 have come into effect on Monday.

Deputy government spokeswoman Rachada Dhnadirek said the decrees were aimed at relieving the debt burden of entrepreneurs and protecting them from unfair interest charges in light of the pandemic.

The first emergency decree was designed to prevent creditors from charging unfair interest rates by abusing ambiguities in the old law. Some creditors have forced debtors who missed a repayment to pay interest on top of the principal amount owed, as the old law did not set out the default rate.

The second one is the emergency decree on the provision of financial assistance for entrepreneurs affected by the Covid-19 pandemic. It provides business recovery loans totaling 250 billion baht for entrepreneurs. The decree earmarks 100 billion baht to help debtors, particularly entrepreneurs severely affected by the pandemic, with asset warehousing and debt repurchasing schemes.