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Thai central bank to introduce more debt measures in October By Reuters

by Mike Robinson

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© Reuters. FILEPHOTO: The Bank of Thailand is Bangkok’s main bank. April 26, 2016, Thailand. REUTERS/Jorge Silva/File Photo

BANGKOK (Reuters) – Thailand’s central bank said on Tuesday it planned to introduce debt consolidation measures to help reduce interest rates on consumer loans for retail debtors, as the country suffers its most protracted coronavirus outbreak so far.

Oramone Chautapant, deputy director of Bank of Thailand (BOT), said the Bank of Thailand’s decision is more effective than raising the rates ceiling on these loans. This would encourage debtors with bad credit scores to borrow outside of the financial systems.

She said that debt consolidation will greatly benefit debtors. It will begin in the middle next month, and she will increase incentives.

She said that lowering the rate ceiling is still an option.

To ease the burden of interest, the government had asked the BOT in June to examine interest rates for credit cards and personal loans.

As the central bank governor said recently, interest rates were an ineffective tool, the BOT said that it would concentrate on financial support to debtors.

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