The Financial Institutions Policy Committee of the Bank of Thailand (BOT) is to cut the contributions to the Financial Institutions Development Fund (FIDF) by commercial banks, from 0.64% to 0.23% of their cash deposits, which will afford them more liquidity to assist debtors.
Deputy Finance minister Paopoom Rojanasakul said today that the three groups of debtors who stand to be assisted by this move are those who have mortgages, car loans and small and medium enterprises, adding that the reduction of contributions to the FIDF will allow more room for the banks to ease access to funding for debtors who experience repayment difficulties or whose debts have become non-performing.
He disclosed that there are about 460,000 mortgage debtors, whose loans do not exceed three million baht each, and 1.4 million car loans, each of not more than 800,000 baht. There are 430,000 SME debtors, whose debts do not exceed three million baht.
Altogether, 2.3 million debtors are expected to benefit from this decision, said Paopoom.
He also said that these debtors will be entitled to interest payment moratoria for up to three years, if they continue to make principle repayments under new terms.
