BOT mulls extension of debt moratorium for some sectors
The Bank of Thailand (BOT) is considering extending the debt moratorium for some business groups, such as those related to the tourism industry like hotels.
The move would be in line with the intent expressed by BOT Governor Veerathai Santiprabhob to extend the debt moratorium for another six months, which will be reviewed twice or extended until the end of 2021.
One of the BOT's concerns is about the debt quality of financial institutions, as 12.5 million debtors are part of the debt restructuring project. Interest payments worth Bt7.2 trillion have been suspended until October.
The first round of the BOT's debt restructuring process is still ongoing. There is still high uncertainty as many firms do not have a clear business plan.
“This is something I have talked to bank executives about. I have suggested that the banks contact customers, evaluate and conduct risk management for customers who are unable to create a business plan, then there must be a clear debt restructuring. We cannot use general measures since the effects are not the same," said Veerathai.
