Banks told by central bank to extend debt repayment for SMEs until year end

[snoop1130]

 

The Bank of Thailand has instructed commercial banks to extend, until the end of the year, debt repayment periods for small and medium-sized enterprises, to help them cope with the impacts from the third wave of the COVID-19 pandemic.

 

Meanwhile, the central bank has allowed banks to pay interim dividends to their shareholders, not exceeding 50% of their net profits, for the first half of this year, but barred them from buying back their shares or capital instruments before their maturity dates, unless there are plans to replace them.

 

BoT Governor Sethaput Suthiwartnarueput said in a statement today (Friday) that the first wave of the COVID-19 pandemic, early last year, through to the third wave beginning in April this year has had widespread impacts on businesses, as well as on people in general, prompting the central bank to roll out several financial measures to help them and to introduce mechanisms for financial institutions to assist their debtors under the current difficult and uncertain situation.

 

Full Story: https://www.thaipbsworld.com/banks-told-by-central-bank-to-extend-debt-repayment-for-smes-until-year-end/

 

-- © Copyright Thai PBS 2021-06-11

 

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[MrJ2U]

That's ok if you have a job.  In the end that accrued interest on top of the principal has to be paid.  It's just kicking the can down the road.  

[RobMuir]

2 minutes ago, MrJ2U said:

That's ok if you have a job.  In the end that accrued interest on top of the principal has to be paid.  It's just kicking the can down the road.  

Yes, kicking it down the road to a time when covid is gone and people can make money and start repayments again. 

 

Probably the most sensible decisions made by governments during this pandemic. Makes little sense for banks to start mass repossessions under these circumstances.