BOT, financial institutions create mechanism to expedite debt restructuring
A mechanism to lessen the debt burden of businesses and support coordination among multiple creditors has been launched by the Bank of Thailand (BOT) together with the Thai Bankers’ Association, the Association of International Banks and the Government Financial Institutions Association.
The “DR BIZ Program” is aimed at helping expedite debt restructuring through common debt workout practice as mutually agreed by all creditors, and assigning a lead creditor to coordinate with other creditors thereby providing a one-stop service, the BOT said.
The BOT added that it hoped business debtors will be able to benefit from the programme, allowing their businesses to recover and adapt to the changing economic conditions.
Debtors eligible for the DR BIZ Program are businesses with good prospects and potential but face temporary economic impacts from Covid-19. Creditors will have suitable tools and procedures to assist each debtor, in line with the debtor’s ability to pay. Such tools include extending the repayment period, lower instalment payment, or adjusting the repayment plan. Moreover, additional financing will be provided to borrowers with healthy prospects, solid business plans, good payment records, and a commitment to continuing their businesses.
In order to implement the programme effectively, the first phase will focus on debtors with total credit lines with all financial institutions in the range of Bt50 million to Bt500 million, and could subsequently be extended to other groups of debtors.
Those who are interested can apply for this programme from September 1 and also find more information at participating financial institutions’ call centre as well as the BOT’s website (www.bot.or.th), the Financial Consumer Protection Centre (hotline 1213).
