Bank of Thailand relaxes debt assistance to support businesses

The Bank of Thailand has eased its debt assistance measures to help businesses and individual borrowers get easier access to credit during the pandemic. 

Such measures include the adjustment of its soft loan scheme to support liquidity for both existing and new SME borrowers by expanding their credit line.

The central bank increased the maximum credit line for new SME borrowers from 20 million baht (US$600,231) to 50 million baht (US$1.5 million) per borrower for loans from any financial institution.

For existing SME borrowers, the central bank maintains the previous regulation allowing a creditor to grant an additional credit line of up to 30% of the existing credit line, but not exceeding 150 million baht (US$4.5 million). 

If 30% of the existing credit line falls below 50 million baht, borrowers are allotted a maximum credit line of 50 million baht each.

READ: Thailand needs US$30 billion more to support the economy

The move by the central bank was done in response to the continued outbreak and extension of government lockdown measures to contain new infections, said Suwannee Jatsadasak, senior director for Regulatory Department II, according to the Bangkok Post.