“Kasikorn Research Center” pointed out that the BOT extended measures to aid debtors. Help to breathe – slow down the financial burden
On January 13, 2021, the reporter reported. Kasikorn Research Center Analysis of the Bank of Thailand (BOT) announced the extension of measures to help debtors by looking at the new outbreak of the COVID-19 virus. The long haul across the year 2021 has continued impact on the economic activities that are waiting to recover. Instead, I had to stop again. This situation aggravates the financial vulnerability problem. Lack of liquidity And the ability to pay debts of many debtors
Recently, the BOT has extended the period for retail debtors to apply for assistance until June 2021 and allows financial service providers to expedite assistance to all types of debtors as appropriate with credit types and to take into account the risks of debtor
Even though a new outbreak of COVID-19 Will have an impact on the recovery of economic activity Including new credit lending by financial institutions, however, it is expected that the extension of the loan borrower service period is expected. By postponing debt payment Extend the life of the debt for a longer period. Including providing loans, working capital and additional liquidity Should help slow down some of the pressure on loan repayment. As a result, the overall loan outlook this year may not slow down much, despite increasing economic risks.
Initially Kasikorn Research Center estimates that The lending of the locally registered banking system should sustain a growth rate of approximately 3.0-4.5% in 2021, while the acceleration of debt restructuring under the relaxation of the BOT’s debt classification criteria. That will take effect until the end of the year And a proactive acceleration of bad debt management should help slow down non-performing debt (NPLs), causing the proportion of NPLs to move up to around 3.53% to total loans at the end of 2021.
Which the Kasikorn Research Center views that The next major focus is to track the number of borrowers entering a new round of aid measures that may return in line with the economic impact of the new COVID-19 outbreak, especially between Q1 / 2021 and the quarter. 2/2021, the information on assistance from financial institutions in this section Besides being an indicator of the pressure on debt quality problems in commercial banks’ credit portfolios. After the COVID-19 situation It started to come back to rest again (Post COVID-19) and it still has an impact on the provision of provisions to accommodate the expected credit losses as well.
The Kasikorn Research Center views that This extension of time for retail receivables assistance measures is a preliminary action. Since almost all guidelines are renewal of the measure. Second phase, which focuses on accelerating the debt restructuring process for retail receivables and helping to reduce financial burden. But although the guidelines do not cover specific measures for businesses facing pressure from the COVID-19 outbreak. A new wave now
However, it is expected that financial institutions, both commercial banks and specialized financial institutions, will continue to closely monitor and provide assistance to entrepreneurial customers in each business sector / area of the establishment. In the part of the business sector Need assistance in both increasing liquidity and accelerating debt restructuring to reduce financial burden. And to help breathe for the debtor to be able to sustain the business And maintain employment levels In order to reduce the risk that will turn back into problems that aggravate the economy in the future
Mr. Ronnadon Numnon Deputy Governor for Financial Institutions Stability The Bank of Thailand (BOT) revealed that the situation of the coronavirus infection epidemic Faster than expected, the BOT asked financial institutions to Specialized Financial Institutions And business operators that are not financial institutions (Financial service providers) expedite help with debtors To mitigate the effects of such situations With details as follows
1. Extend the time for retail debtors to apply for assistance until June 30, 2021 (originally due on December 31, 2020) whereby the debtor can apply for assistance by himself. Or employers or business owners can apply for assistance on behalf of the debtor, for example in the case of welfare loans Which requires consent from the debtor who is an employee or employee In order to obtain assistance from the debtor in an efficient and timely manner.
2. Let financial service providers expedite assistance to all types of debtors. (Retail receivables, SMEs and large business receivables) as appropriate for the type of credit and taking into account the risk of the debtor Classified by nature of business and affected areas Which has different guidelines as follows
2.1 Debt restructuring such as reducing installments, extending debt repayment periods Renew the credit limit or keep the limit Change the type of debt from short-term loans to long-term loans. Be free from temporary principal and / or interest payments Reduce the interest rate below the market rate, etc.
2.2 Providing additional working capital and liquidity 2.3 Consider postponing debt repayment for SMEs debtors with credit limit not exceeding 100 million baht under the soft loan decree and 2.4 relieving other conditions as appropriate.
As of November 2020, the latest data to support debtors affected by COVID-19, as of November 2020, customers received assistance of 5.6 trillion baht, or 11 million accounts, most of which were retail bank receivables. And Specialized Financial Institutions (SFIs) of 3.22 trillion baht or 10 million.
“The BOT is in the process of following closely the data on the impact of debtors. And the help of the bank that is required or not However, if the BOT deems that there is additional necessity and measures to continue to take care of it, ”said Ronnadol.
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