Ekniti launches 10-billion-baht AMC plan to tackle bad debt
Deputy PM Ekniti Nitithanprapas to set up 10-billion-baht AMC using rehabilitation fund to buy public NPLs, aiming for faster and fairer debt relief.
Deputy Prime Minister and Finance Minister Ekniti Nitithanprapas announced a new initiative to tackle household debt by establishing an Asset Management Company (AMC) to purchase non-performing loans (NPLs) from banks.
The move, supported by up to 10 billion baht from the Financial Institutions Development Fund, aims to manage distressed household debt outside the banking system through existing mechanisms.
Ekniti said his team is in talks with the Bank of Thailand (BOT), with governor personally overseeing the project to ensure rapid implementation of the public debt relief scheme.
Funded by rehabilitation fund, not the state budget
He explained that the debt purchase plan will not rely on the state budget but will instead draw from the Financial Institutions Development Fund, which currently holds around 26 billion baht. The plan calls for using up to 10 billion baht to buy part of the household debt from financial institutions.
Similar to the 1997 financial crisis model, the government will acquire the debts at fair but discounted prices, as most banks have already set aside provisions for loan losses. Ekniti also mentioned the possible adoption of a gain–loss sharing mechanism between the state and banks, as used in the past.
Consolidating debts and restructuring payments
The initiative’s core objective is to help and rehabilitate debtors with loans scattered across multiple lenders. Once consolidated, their repayment capacity will be reassessed, allowing for restructuring through principal and interest rate reductions.
“Once we buy the debts, we can consolidate each borrower’s obligations and assess their true repayment ability. Then we will restructure — cutting both principal and interest,” Ekniti said, adding that interest rates of 10–20% could be lowered significantly.
“For example, a debtor paying 5,000 baht per month may see payments reduced to just 1,000 baht.”
The Finance Ministry will also promote financial discipline through the “Ari Score” system — a credit rating that rewards responsible borrowers with benefits such as further interest rate reductions, helping them regain access to formal credit.
Ekniti added that instead of creating a new AMC, which would take too long to register, the government is considering using Sukhumvit Asset Management (SAM), a state-owned entity jointly held by the BOT and the Finance Ministry.
“The faster option is to utilise SAM, a company jointly owned by the BOT and the Finance Ministry, which already has the necessary operational mechanisms in place. This allows immediate implementation without wasting time setting up a new organisation,” Ekniti said.
