Problem loans are to be restructured
The government plans to roll out the new debt resolution programme “Clear Debt, Move Forward” in January next year, offering measures such as interest payment waivers and reductions of principal for qualified borrowers.
The Bank of Thailand, in collaboration with the Finance Ministry and financial institutions, on Tuesday launched the initiative to address bad loans through the purchase of retail debt by asset management companies (AMCs). The programme is slated to take effect in January 2026, according to Finance Minister Ekniti Nitithanprapas.
Speaking after a memorandum of understanding signing ceremony among the relevant agencies on Tuesday, Mr Ekniti said the scheme aims to help small borrowers break free from the cycle of non-performing loans (NPLs) and return to the formal financial system.
Central bank governor Vitai Ratanakorn said the new measure is a one-time, special initiative targeting unsecured NPLs. The programme covers individual borrowers with total NPLs across all financial institutions of less than 100,000 baht per person as of Sept 30, 2025.
In the initial phase, the programme covers around 1.6 million loan accounts, or 1.2 million borrowers, from commercial banks and their affiliated financial businesses, representing roughly 43.6 billion baht in debt.
Sukhumvit Asset Management Co (SAM), the country’s second-largest AMC under the supervision of the central bank, is purchasing these loans and offering flexible debt restructuring to help borrowers resume repayments.
Mr Vitai said the central bank plans to reposition SAM as a “social AMC”, focused on public debt resolution rather than profit generation. For the next phase, the programme’s scope may expand to allow SAM to purchase debts from other types of financial service providers, he said.
“Borrowers participating in the programme will receive debt restructuring under more favourable terms than usual, such as waivers of all accrued interest and fees, and partial principal reductions,” said Mr Vitai. “These measures will enable borrowers to repay debts faster, improve their credit records, and regain access to formal credit channels.”
The programme provides two repayment options: lump-sum settlement, allowing borrowers to pay a portion of their debt to immediately close their account; and instalment repayment, allowing repayment in instalments for up to three years, during which no interest will be charged if the borrower meets the programme’s conditions.
For borrowers from specialised financial institutions, assistance is provided through Ari AMC, which is to purchase and restructure about 330,000 loan accounts under similar principles.
The programme is expected to assist up to 1.9 million retail debt accounts nationwide.