Sumary of BoT adds SME debt rejig options:
- The central bank extended the debt moratorium term for small and medium-sized enterprises (SMEs) to December from June 30..
- The central bank also allows financial institutions to use their own definition for SMEs when providing debt restructuring to them..
- The central bank also relaxed the non-performing loan (NPL) classification for SME debt restructuring until Dec 31, said deputy governor for financial institutions stability Ronadol Numnonda..
- In addition, Mr Ronadol said the central bank maintains eased NPL classifications and loan-loss reserve regulations for financial institutions, helping SMEs’ debt restructuring..
- He said the central bank wants debt restructuring measures applied in line with a borrower’s ability to pay and business feasibility rather than a focus on the debt moratorium..
- Under the central bank’s existing debt relief measures for businesses, due to expire at the end of this month, the bank found 65% of SME applicants are back to a regular debt repayment schedule, while 30% remain in a debt restructuring programme….