The Ministry of Finance unveiled details of its plan to solve formal debts today. 

Dr Paopoom Rojanasakul, secretary to the finance minister, said formal debtors seeking state help will be divided into those affected by the COVID-19 pandemic, those who have permanent incomes but are overloaded with debt, debtors who have uncertain incomes and debtors whose loans have been non-performing (NPLs) for a long time.

The first group can seek help from the Government Savings Bank (GSB) or the Bank of Agriculture and Agricultural Cooperatives (BAAC).

SMEs affected by the COVID pandemic and have incurred debt of not more than 10 million baht with state banks can seek refinancing with the GSB, BAAC, Government Housing Bank (GHB), Islamic Bank, SME Bank, EXIM or Thai Credit Guarantee Corp (TCG). Their debts will be restructured and they will be entitled to suspension of principal repayments for one year and the interest rate will be cut to just 1%.

State officials who have incurred debts with their cooperatives are advised to contact the GSB. For credit card debts, the borrowers will be given a chance to refinance, repayable over up to 10 years, with an interest rate cut to 3-5% from 16-25%. In this case they are advised to contact the Sukhumvit Asset Management Company.

The Finance Ministry will help to ensure that indebted officials receive 30% of their monthly pay after their agreed debt repayments are deducted at source.

For debtors who do not have permanent incomes, including those with car or motorcycle leasing debt, the Consumer Protection Committee will issue an announcement to set the interest rate ceiling and the rate of default repayments.

For those who have chronic NPLs, their debts will be restructured and interest rates cut, through the transfer of their debts from leasing companies to an asset management company.