Financial Institutions Ready to Comply with Debt Reduction Measures

[snoop1130]

 

BANGKOK (NNT) - Financial Institutions expressed readiness to comply with measures to reduce household debt that is set to begin next year.

 

The Bank of Thailand will commence with persistent debt (PD) for revolving personal loans as part of the household debt settlement plan and will encourage performing loan debtors to take part in the scheme. Participants would be able to receive an annual interest rate of no more than 15%, compared to the current 25% ceiling rate for personal loan products.

 

PD clients will be categorized into general and severe groups. Individuals considered to be in General PD are those who have been in debt consecutively for three years, while severe PD borrowers are those who are in debt consecutively for five years, with a minimum monthly income of 20,000 baht if using a bank or 10,000 baht for non-bank users. The measures are set to go into effect on April 1, 2024.

 

Following the announcement from the central bank, Bank for Agriculture and Agricultural Cooperatives (BAAC) managing director Chatchai Sirilai stated that BAAC is ready to help its clients relieve their financial burden in accordance with the central bank’s regulations. He emphasized that the bank’s 4.3 million customers are mostly PD borrowers who are in elderly and vulnerable groups, stressing that the banks want to get them out of debt as soon as possible.

 

Meanwhile, Personal Loan Club Vice-President Athip Sinpagekan stated that its non-bank members are ready to comply with the measures and will encourage their clients to participate in the PD plan. Payong Srivanich, Chairman of the Thai Bankers’ Association, affirmed that commercial banks will comply with PD measures as well.

 

BOT Deputy Governor Ronadol Numnonda added that the central bank would approach loan operators and the rest of the co-operatives to join the household debt resolution program as well. Currently, the central bank is in charge of approximately 70% of total household debt.

 

By Krajangwit Johjit

 

Source: https://thainews.prd.go.th/en/news/detail/TCATG230728133412920

 

-- © Copyright NNT 2023-07-28

 

- 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.

[worgeordie]

12 minutes ago, snoop1130 said:

The measures are set to go into effect on April 1, 2024.

Seems fitting somehow. 

 

regards Worgeordie

[rbkk]

The banks have already begun to balance out their income flows from loans. My wife has a business for the last 5 years. She's a good repayer. Her prior offer from SCB was @3x monthly revenue. 2 weeks ago an offer of @5x monthly revenue is being waved in front of her. She's holding out for those lower interest rates before using bank funds to expand.

[brianlg]

13 hours ago, snoop1130 said:

 

BANGKOK (NNT) - Financial Institutions expressed readiness to comply with measures to reduce household debt that is set to begin next year.

 

The Bank of Thailand will commence with persistent debt (PD) for revolving personal loans as part of the household debt settlement plan and will encourage performing loan debtors to take part in the scheme. Participants would be able to receive an annual interest rate of no more than 15%, compared to the current 25% ceiling rate for personal loan products.

 

PD clients will be categorized into general and severe groups. Individuals considered to be in General PD are those who have been in debt consecutively for three years, while severe PD borrowers are those who are in debt consecutively for five years, with a minimum monthly income of 20,000 baht if using a bank or 10,000 baht for non-bank users. The measures are set to go into effect on April 1, 2024.

 

Following the announcement from the central bank, Bank for Agriculture and Agricultural Cooperatives (BAAC) managing director Chatchai Sirilai stated that BAAC is ready to help its clients relieve their financial burden in accordance with the central bank’s regulations. He emphasized that the bank’s 4.3 million customers are mostly PD borrowers who are in elderly and vulnerable groups, stressing that the banks want to get them out of debt as soon as possible.

 

Meanwhile, Personal Loan Club Vice-President Athip Sinpagekan stated that its non-bank members are ready to comply with the measures and will encourage their clients to participate in the PD plan. Payong Srivanich, Chairman of the Thai Bankers’ Association, affirmed that commercial banks will comply with PD measures as well.

 

BOT Deputy Governor Ronadol Numnonda added that the central bank would approach loan operators and the rest of the co-operatives to join the household debt resolution program as well. Currently, the central bank is in charge of approximately 70% of total household debt.

 

By Krajangwit Johjit

 

Source: https://thainews.prd.go.th/en/news/detail/TCATG230728133412920

 

-- © Copyright NNT 2023-07-28

 

- 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.

 

[brianlg]

They should ALSO start "checking" ALL guarantors "credentials" [ie: their ability to pay any debt] income/assets/property etal PRIOR to issuing any type of finance to other individuals and/or family members !!!

Edited July 28, 2023 by brianlg
To make more succinct ...

[Cake Monster]

The Banks are having a serious problem now, in trying to get back the Money they Loaned out over the Covid period to " assist " the Economy, with many Loans issued under very lax criteria

Much of this Money Loaned was for was for the purchase of Vehicles, Credit Cards and White Goods Etc, all to keep the people spending money

All of which are unsecured Loans

Of the 18 Trillion owed, only roughly 20 % (3.6 Trillion,) of the Loans have any security against them, and to put those figures into perspective, the State Agencies received 1.95 Trillion in Revenue for the first 9 Months of this Year

This is a very serious issue for the Country and very hard decisions need making before the Country is pulled under by all this Debt, - and urgently