Pheu Thai plans to help 5 million borrowers still reeling from pandemic

The Pheu Thai Party is calling for a debt suspension plan for 5 million borrowers who combined have 430 billion baht in non-performing loans (NPLs) due to the economic impacts of the pandemic.

The NPLs are classified as “Code 21” by the National Credit Bureau because they are directly linked to the pandemic-induced economic downturn.

The 5 million people and SMEs with Code 21 NPLs previously had no history of missed payments or bad debt, but as a result of the pandemic they are struggling to pay off their loans, Pheu Thai members said, adding that the debt-suspension programme will help borrowers escape being trapped in debt.

Members of the party have held discussions with specialised financial institutions (SFIs) and the Bank of Thailand (BOT) to devise strategies for aiding borrowers with Code 21 NPLs.

Pheu Thai is proposing a plan that involves collaboration between state and private commercial banks, as well as the BOT, to facilitate debt repayment and provide targeted assistance to these borrowers. Pheu Thai has suggested both debt suspensions and potentially allowing some debtors to repay at a reduced rate for the 5 million borrowers.

The party is also calling for an end to reporting Code 21 loans from January 2024.