Thailand Finalizes Bad Debt Plan to Help Two Million Borrowers

Thailand has finalized a plan to purchase around 60 billion baht ($1.8 billion) worth of bad debt that will help about two million individual borrowers and revive the economy.

The bad loans — each not exceeding 100,000 baht — will be transferred to two state-backed asset management companies which will offer more “relaxed” repayment terms to help households become financially stable, Finance Minister Ekniti Nithithanprapas said Monday. The Bank of Thailand will work with banks on the implementation details before a memorandum of understanding is signed and presented to the Cabinet next week, he said.