Economic Cabinet okays debt restructuring plan to ease burden on 3.4 million Thais

The Economic Policy Committee has approved a comprehensive debt-relief programme worth 122 billion baht, targeting 3.4 million small borrowers with debts not exceeding 100,000 baht per person.

Deputy Prime Minister and Finance Minister Ekniti Nitithanprapas said the scheme will be implemented through the acquisition and restructuring of small-scale non-performing loans (NPLs) by asset management companies (AMCs) — a core mechanism under the government’s policy framework presented to Parliament.

He said the government considers “resolving household debt” a national priority, as millions of small borrowers are struggling with unmanageable debts — particularly unsecured loans — and face difficulties in servicing or refinancing multiple debts across financial institutions.

Target group: small unsecured NPLs

The initiative focuses on individuals with non-performing unsecured loans owed to financial service providers as of September 30, 2025, with total debt across lenders not exceeding 100,000 baht per borrower.
This group comprises around 3.4 million individuals, or 4.76 million accounts, representing combined debt of about 122 billion baht.

The programme’s main objective is to restructure small NPLs, reduce borrowers’ financial burdens, and help them restore good credit records to regain access to formal financing in the future.

The Finance Ministry, in collaboration with the Bank of Thailand and the financial sector, designed the framework to accelerate debt resolution for households whose NPLs have turned into long-term social and economic problems.

Group 1: Restructuring via AMCs

Debtors of commercial banks, their financial subsidiaries, and specialised financial institutions (SFIs) will receive assistance through debt sales to two designated AMCs:

• Sukhumvit Asset Management Co., Ltd. (SAM)
• Ari Asset Management Co., Ltd. (Ari-AMC)

These AMCs will restructure debts under flexible and affordable repayment terms, such as:

• Reduced or waived interest rates,
• Partial settlement schemes, or
• Fee exemptions to facilitate full account closure.

Group 2: Direct assistance from SFIs

SFIs will implement additional, institution-specific restructuring measures for their more vulnerable borrowers, including:

• Partial repayment options to close accounts;
• Principal reduction with full interest forgiveness;
• More lenient repayment follow-up procedures; and
• Debt write-offs for borrowers without repayment capacity.

“These two approaches mark a critical starting point for a systematic state-led debt resolution effort,” said Ekniti. “They will allow around 2.36 million accounts, worth about 62.4 billion baht, to be restructured immediately.”

Next phase: Expanding to non-bank lenders

In the next stage, the government will consider extending the framework to cover non-bank financial institutions, ensuring that all segments of debt-stressed borrowers — both banked and unbanked — can access fair restructuring mechanisms under the same principles.

Goal: sustainable debt relief and financial recovery

Ekniti said the project marks a turning point in tackling Thailand’s household debt crisis and will significantly improve the quality of life for millions of borrowers.

Through AMC-led restructuring, borrowers will receive fair, flexible repayment options aligned with their income capacity, enabling them to fully repay debts and return to the formal credit system.

“This will free borrowers from predatory informal loans, promote sustainable recovery, and help them become productive contributors to the economy once again,” Ekniti said.

Key objectives of the programme:

• Reduce household debt burdens and prevent defaults.
• Restore borrowers’ credit standing through formal restructuring.
• Expand access to fair financial services.
• Support economic recovery by improving household liquidity.

Ekniti emphasised that the scheme is part of the government’s long-term plan to build a comprehensive, fair, and inclusive debt-relief ecosystem for Thai citizens.