Issued in April, the emergency decree amends the Civil and Commercial Code to close loopholes that allowed creditors to force defaulting debtors to pay interest on top of the principal amount owed.

The amended law sets annual interest at 3 per cent and reduces the default rate from 7.7 per cent to 5 per cent.

Finance Minister Arkhom Termpittayapaisith told MPs that the emergency decree is part of the financial system. Responding to questions, he assured Parliament that credit protection for all target groups will be taken into consideration.

A total of 403 MPs voted to back the emergency decree, with one against and two abstentions.

MPs back emergency decree to cut interest for defaulting debtors

MPs on Thursday voted overwhelmingly in favour of an emergency decree protecting debtors from unfair interest rates during the Covid-19 crisis.