Bangkok: The Bank of Thailand (BOT) has called upon banks and non-banking financial institutions to adjust credit card payment criteria and offer emergency loans to support debtors impacted by the disturbances at the Thai-Cambodian border. This initiative aims at alleviating the financial strain on individuals and businesses facing challenges due to the ongoing situation.
According to Thai News Agency, Mr. Somchai Lertlarpwasin, Assistant Governor of the Financial Institutions Policy Group at BOT, outlined that the unrest at the border has created significant disruptions, affecting the safety, livelihood, and economic activities of the people and businesses in the region. The situation has led to property damage and potential income loss, escalating the financial burden on those affected and impairing their ability to meet debt obligations.
In response, the BOT has requested the cooperation of financial institutions, specialized lenders, and non-financial retail lending entities to provide timely assistance to impacted debtors. The proposed measures include allowing credit card loans to reduce the minimum repayment rate below the standard BOT rate for a maximum of 12 months, effective from July 25, 2025.
Furthermore, personal loans, including digital personal loans, may exceed standard BOT credit line conditions to ensure that debtors have access to necessary emergency funds to mitigate damages. Approval for these emergency credit lines is urged to be expedited and completed within 12 months from the specified date.
The BOT also suggests extending financial and liquidity support across all loan types to aid debtors in repairing their homes or sustaining their businesses. This may involve adjusting loan conditions, such as reducing or waiving interest and fees, easing repayment terms, or restructuring debts, with an emphasis on swift implementation within the same 12-month timeframe.
Throughout this assistance period, the BOT will maintain the existing debtor classification criteria to ensure consistent support. The BOT expresses its hope that the affected debtors will receive prompt and adequate assistance and extends its encouragement to all individuals and sectors impacted by the border unrest.