The Bank of Thailand (BoT) has pointed out that the prolonged nature and long-lasting effects of the COVID-19 pandemic mean commercial banks and clients should focus on long-term debt restructuring.
BoT deputy governor RonadolNumnonda said short-term debt suspensions or restructurings are not proportionate to the suffering of bank clients as a result of the pandemic and lockdown restrictions. The pandemic is expected to be a factor in the country’s economy for a long time and it will take time for bank clients’ businesses to recover fully.
He said this means both banks and their clients should focus on long-term debt solutions, adding that the central bank is in talks to provide incentives to banks, to encourage them to offer long-term debt restructuring packages to their clients.
Ronadol said banks can offer long-term debt restructuring without waiting for the BoT to amend related rules. The central bank is not going to determine the minimum length of long-term debt restructuring, as this depends on clients’ particular circumstances, and there is no “one size fits all†solution. (NNT)
Bank of Thailand recommends long term debt solutions as lockdown will last longer than expected
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Category: Thailand
