Bangkok: The Bank of Thailand said that SMEs affected by Trump's tax can negotiate debt restructuring without having to wait until they become NPLs. The criteria for reducing the minimum payment on credit cards is being reviewed. Meanwhile, the "You Fight, We Help" Phase 2 program has already registered 73,000 individuals and 130,000 accounts.
According to Thai News Agency, Ms. Suwannee Jesadasak, Assistant Governor, Financial Institutions Supervision Group, Bank of Thailand (BOT), addressed the impact on SME entrepreneurs due to US President Donald Trump's countervailing tax measures. She emphasized that BOT has aligned measures with Responsible Lending guidelines, which aid both pre-NPL and post-NPL debt negotiations. This initiative, initially set during the COVID-19 pandemic, allows SMEs to renegotiate debt terms to align with their repayment capabilities, even before becoming non-performing loans.
Regarding credit card minimum payment adjustments, the rate was initially reduced from 10% to 5% during COVID-19. As the economy showed signs of recovery, the rate was increased to 8%. However, given the current economic situation, there is speculation about reducing the minimum payment back to 5%. Ms. Suwannee mentioned that relevant agencies are reviewing this possibility and will provide an update soon.
Thailand's household debt stands at 16.4 trillion baht, with a slight decrease in the debt-to-GDP ratio to 87.4% in the first quarter of 2025, reflecting the economic recovery and slowed household loans. However, the uncertain economic climate necessitates careful monitoring of loan quality.
The 'You Fight, We Help' project has seen significant engagement, with 1.5 million registered applicants as of mid-July 2025, covering 2.0 million accounts. As of June 30, 2025, 650,000 debtors were found eligible for the program, representing 34% of potential participants, with debts amounting to 480 billion baht. The second phase of the project registered 73,000 debtors between July 1-15, 2025, totaling 130,000 accounts across both phases. Financial institutions have been instructed to expedite debt restructuring agreements to assist debtors per the program's criteria.