Bank of Thailand extends debt restructuring measures for SMEs
The Bank of Thailand (BOT) has added on debt restructuring measures for SMEs as businesses reel from the impact of the pandemic.
The debt moratorium has been extended from June 30 to December, and will be applicable to SMEs hit by the economic uncertainty due to Thailand’s third wave in tackling the coronavirus pandemic.
The extension of the debt moratorium will apply to SMEs on a case-by-case basis, depending on the creditor’s discretion.
The BOT has also relaxed the classification for non-performing loans until December 31, according to deputy governor for financial institutions stability Ronadol Numnonda.
The central bank has now allowed financial institutions to define SMEs based on their own definition, according to Bangkok Post. Previously, the former regulation limited financial aid to SMEs with credit lines not exceeding 100 million baht (US$3.2 million).
The BOT aims for the debt restructuring measures to be in line with a borrower’s ability to pay and business feasibility rather than focus on the debt moratorium, which is key to helping SMEs overcome the crisis, said Ronadol.