BOT to Leverage Digital Technology in Negotiation of Debt Restructuring

[snoop1130]

 

BANGKOK (NNT) - Thailand’s central bank has disclosed that digital innovations, such as online meetings, will be implemented to help facilitate debt restructuring negotiations.

 

The Bank of Thailand (BOT) indicated the move through a memo, saying digital technology will be leveraged with juristic persons, SMEs and personal loan takers.

 

The BOT said it aims to provide greater convenience for borrowers by streamlining the process in a way that does not require physical meetings and conforms with the government’s health safety measures.

 

Keep up to date with all things Thailand - Join our daily ASEAN NOW Thailand Newsletter - Click to subscribe

 

The central bank also noted that it plans to further develop its existing digital solutions to handle future financial transactions as Thailand transitions into a digital economy. The memo added that the implementation will take into consideration risk factors, as well as the readiness of entrepreneurs and borrowers.

 

To that end, the BoT has granted permission for organizations under its jurisdiction to use digital authentication methods in order to verify loan takers via databases and mobile applications.

 

Additionally, it said negotiations related to debt restructuring and term adjustments can be conducted electronically. Financial institutions, however, must also produce negotiation logs for reference.

 

-- © Copyright NNT 2022-04-27

 

- Cigna offers a range of visa-compliant plans that meet the minimum requirement of medical treatment, including COVID-19, up to THB 3m. For more information on all expat health insurance plans click here.

 

- Follow ASEAN NOW on LINE for breaking COVID-19 updates

[mahtin]

"Financial institutions, however, must also produce negotiation logs for reference. "

 

50 years ago when I started on an IBM mainframe, we were required to also balance the firm's ledger every night using a mechanical calculator. Filling in the columns by hand.

Just in case of computer error.

 

Getting there, Thailand.

[RichardColeman]

12 hours ago, snoop1130 said:

The BOT said it aims to provide greater convenience for borrowers by streamlining the process in a way that does not require physical meetings

To me that is where the financial world partially started going wrong - never meeting anybody in person. 

[micmichd]

2 hours ago, RichardColeman said:

To me that is where the financial world partially started going wrong - never meeting anybody in person. 

That's globalization. You can't be everywhere just in time.