Curiosity wait on debt of B1.31trn
As part of efforts to reduce household debt, the Finance Ministry has revealed details about the government’s plan to halt interest payments for three different debtor parties.
The strategy for borrowers with debt up to a year premature was approved by the financial stimulus committee headed by Prime Minister Paetongtarn Shinawatra on Tuesday.
The three-year attention suspension system will support late home loans not exceeding 3 million baht, car loans not exceeding 800, 000 baht, and tiny- and medium-sized enterprises ‘ loans of up to 3 million baht, Paopoom Rojanasakul, deputy finance minister, said.
Of the payments totalling 1.31 trillion baht, home mortgage lenders owe 480 billion baht, auto loan lenders owe 370 billion rmb, and SMEs owe 454 billion baht, Mr Paopoom said.
Because we believe the debt will be able to clear their debt and getting back on their feet rapidly if they receive assistance from the government, the government has decided to suspend interest payments for the debt.
The Finance Ministry will allow banks to reduce their fee contributions to the Financial Institution Development Fund ( FIDF) from the current level of 0.46 %, according to Mr. Paopoom, in order to make up for the bank’s interest rate reduction caused by the measure.
The Thai Bankers ‘ Association ( TBA ) confirmed that banks will be able to finance the interest suspension program by lowering their FIDF fee contribution.
Consumers who receive a expulsion may follow a debt restructuring plan and refrain from applying for additional money over the course of three years to prevent moral hazard and guarantee the efficient reduction of household debt.
According to bill data as of October 31, eligible borrowers must have completed their payment agreements with banks by January 1 of this year and be facing difficulties making their mortgage payments.
According to the TBA, the initiative aims to assist targeted borrowers in reducing their debt and encouraging economic discipline throughout the restructuring process. As of June, Thailand’s household-to-GDP ratio was 89.6 %, and household debt was 16.3 trillion baht, among the highest levels in Asia.
However, deputy finance secretary Julapun Amornvivat announced on Wednesday that the state security committee would join on Thursday to evaluate the requirements for state welfare cards.
According to Mr. Julapun, fresh registration will start for applicants in March of next year.
According to the Finance Ministry, some individuals may have earned enough to leave a resilient type without losing their ability to receive benefits because of the need to reprocess data to determine eligibility for vulnerable groups.
Every two decades, the department reviews the registration of people with state security cards. The 2022 assessment was the last one, and this year’s assessment was supposed to start.
The innovative registration review was delayed until early 2025 due to efforts to address the country’s flood problems in some areas.
The main requirements for receiving the state security card is having a child’s and family’s annual salary hardly reach 100, 000 ringgit. Based on a daily minimum salary of 300 rmb, this number has been determined. In the most recent membership large for the express welfare card, there were 13.5 million less eligible recipients than there were in the previous round, down from 14.9 million.