InfoQuest (February 25, 2020) -- Mr. Pridi Daochai, president of the Thai Bankers' Association, said current events, including the COVID-19 outbreak, drought and exchange rate fluctuations of Thai baht and trade war, have had a severe impact on the liquidity for businesses and households. Therefore, the Thai Bankers' Association and its bank members will introduce measures to assist businesses customers of commercial loans, international trade loans, and leasehold loans who were hit by these events, directly or indirectly, and individual customers working in affected businesses who are involved in housing loans, personal loans, leasehold loans, and credit card loans.
As yet, banks have been in touch with customers to offer assistance to them, and a considerable number of customers have applied for this service, but the amount of assistance funds cannot be determined yet, because it still takes time to review and evaluate the plan.
The relief measures will be provided to three categories of customers.
First, for businesses in the tourism sector directly or indirectly affected amid these blows, i.e. operators engaged in hotels, logistics, restaurants, travel agencies entertainment, souvenir shops and other related businesses, they are allowed to pay interest in installments for a maximum of one year. Meanwhile, to boost tourism and create revenue through promotional campaigns and credit card promotions launched by the government in cooperation with tourism operators, such as reducing prices on weekdays to promote travel.
Second, targeting importers and exporter and enterprises in the affected production chain, the packing credit or promissory note (P/N) repayment period will be extended for up to three months each time.
Third, for workers in affected enterprises, housing loan interest can be paid in installments with a maximum of one year. As for customers of credit card loans and personal loans, there are two choices available. One is that customers can pay interest in installments for a maximum of one year, and banks also consider cutting rates for some customers. Another is changing all or part of the existing debt into a new loan as the case may be. Then customers pay loans in installments with a maximum of one year. And packages for customers of auto loans include extension of repayment schedules and reduction of the monthly repayment amount.
"In the meantime, the Thai Bankers' Association will work closely with the government and other private bodies to monitor and assess the situation to help maintain the operation of businesses and households until the situation returns to normal," said Mr. Pridi.
Mr. Pridi also said the success of these measures must depend on the cooperation of all parties concerned. "As too many businesses affected directly or indirectly, perhaps we should first consider providing assistance to those most severely affected, so as to avoid lasting impacts on business systems and supply chains, and consumer confidence, since it is impossible to predict when the business sector will recover and get back on track," he said. The above operators can contact their banks to apply for the assistance.
Source: InfoQuest, by Jeerayuth Junsongsakun / Kasamarporn / Rachada, translated by Xinhua Silk Road.
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