Govt Savings Bank forgives another 90,000 small loans
The Government Savings Bank has decided to forgive the non-performing loans (NPLs) of another 90,000 self-employed workers suffering from the economic fallout of the pandemic.
This round brings the total number of loans forgiven over the past three months to 720,000.
Withai Rattanakorn, the bank’s director, said that as per a Cabinet resolution on December 19, 2023, all loans that have reached NPL status will be absolved and the debtors’ credit history cleared to keep them eligible for future loans.
These loans were taken under a scheme launched in 2020 to help self-employed workers.
The bank has been authorised to use funds allocated to cover losses from NPLs, but it has said this assistance will only be extended once. The government believes this should encourage borrowers to practice financial discipline.
By the end of this year, more than 100,000 borrowers are expected to be absolved from their debts.
