Thailand's central bank offers more debt measures to ease Covid-19 impact


BANGKOK, Aug 21 (Reuters): Thailand's central bank has approved additional measures to assist debtors affected by the country's coronavirus epidemic with income and jobs declining, as an economic recovery will be slow and uneven, it has announced.

The South-East Asian country reached 1 million infections on Friday (Aug 21), the vast majority of those in the past five months, prompting strict curbs in areas accounting for about 80% of gross domestic product.

The outbreak has severely affected the Thai economy approved to ease the impact include liquidity for smaller businesses and an easing of rules on loans for retail debtors, the Bank of Thailand (BOT) said.

Flexible rules on debt classification and provisions will be allowed until the end of 2023 to reduce banks' costs so that they can help debtors with debt restructuring, the BOT said.

A reduced 0.23% of deposits per annum that banks pay into the Financial Institutions Development Fund (FIDF) will be extended for another year to the end of 2022.

"The measures will be like a provision to be passed on to financial institutions so that they can help debtors," senior director Suwannee Jatsadasak told a news conference.

The BOT has focused on financial and debt measures since last cutting its key interest rate in May 2020 due to the impacts of the pandemic. The BOT governor recently said interest rates were a blunt tool. - Reuters

Article type: metered
User Type: anonymous web
User Status:
Campaign ID: 1
Cxense type: free
User access status: 3
Subscribe now to our Premium Plan for an ad-free and unlimited reading experience!
   

Next In Aseanplus News

Macau casino giants win licence renewals, Malaysia's Genting loses bid
Soccer-Australia's Duke treasures special goal celebration dedicated to young son
Asean News Headlines at 9pm on Saturday (Nov 26, 2022)
Indonesia’s six-month plan for investment opportunities for transition to renewable energy
Bukit Jalil a hive of activity ahead of Malaysia Cup final
Singapore reports 1,290 new Covid-19 cases and no new deaths on Saturday (Nov 26)
Experts in Indonesia say that Cianjur quake points to fact that urgent improvement needed in disaster mitigation flaws
Still no late nights out in Thailand ... Proposal to let nightspots remain open till 4am rejected
Draft Public Services Act to protect, streamline civil service, urges ex-chief secretary
Soccer-Duke header gets Australia past Tunisia for first World Cup win since 2010

Others Also Read