6,600 GHB debtors register for debt restructuring in first 2 days

Some 6,600 of the 349,000 eligible borrowers from the Government Housing Bank (GHB) have registered for debt restructuring in the first two days since registration began on Thursday. 

Kamolpop Virapala, the bank’s managing director, said on Monday that by the end of Saturday, some 6,600 housing loan holders had put their names down for the restructuring programme. They have until February 28, 2025, to apply for assistance via the Bank of Thailand website https://www.bot.or.th/khunsoo. 

He said 349,000 people who had taken house loans with GHB were eligible for the “You Fight, We Help” debt restructuring programme. The combined value of their debts is 310 billion baht. 

Under the programme, registered debtors will not have to pay interest for three years. 

The programme was launched to help some 1.9 million household debt holders who owe a combined debt of approximately 890 billion baht.

The scheme will be funded through a combination of sources, including contributions from the Financial Institutions Development Fund, government loans and soft loans from the Government Savings Bank. 

Kamolpop said under the programme, GHB stands to lose 16.9 billion baht in interest earnings, but the government will shoulder half of this under Article 28 of the Financial Discipline Act. 

However, he said, the bank expects the debt restructuring programme to reduce the non-performing loan ratio from 5.5% this year to 4% or 5% next year. 

This project will also allow GHB lower its reserve fund to the ratio of non-performing loans. Initially, the GHB would have to set aside 8 billion in ratio to NPLs, but this can be reduced once the number of NPLs drops, Kamolpop said.