- August 12, 2021
- Posted by: admin
- Category: Daily News
- The prolonged nature and long-lasting effects of the Covid-19 pandemic mean commercial banks and clients should focus on long-term debt restructuring, says the Bank of Thailand.
- Ronadol Numnonda, the central bank’s deputy governor for financial institutions stability, said short-term debt suspensions or restructurings are not proportionate to the suffering of bank clients as a result of the pandemic and lockdown restrictions.
- He said the pandemic is expected to be a factor in the country’s economy for a long time and it will take time for bank clients’ businesses to fully recover. This means both banks and their clients should focus on long-term debt solutions, said Mr Ronadol.
- The central bank is in talks to provide incentives to banks to encourage them to offer long-term debt restructuring packages to their clients. Mr Ronadol said the central bank is not going to determine the minimum length of long-term debt restructuring as this depends on clients’ particular circumstances.
- Suwannee Jatsadasak, senior director of regulatory policy for the Bank of Thailand, said the institution is pushing for long-term debt restructuring for retailers and small and medium-sized enterprises affected by the pandemic. She said banks have enough ammunition to offer long-term relief packages to their clients.