The Bank of Thailand (BOT) has announced the launch of Phase 2 of the 'Koon Suay Helps' initiative, aimed at supporting customers facing financial difficulties. This phase will extend from April 1 to June 30, 2025, allowing more individuals to access crucial debt relief measures. The decision to prolong the program comes in response to the increasing number of borrowers struggling to meet their payment obligations due to economic uncertainties.
According to reports from Bangkok Biz News, the BOT, in collaboration with the Thai Bankers' Association, recognizes the growing vulnerability of borrowers and the necessity for ongoing support. The new measures are designed to address the needs of customers who are experiencing debt issues, particularly those who have fallen behind on their payments.
Under Phase 2, the BOT will introduce three key measures aimed at providing comprehensive assistance to borrowers:
1. Direct Payment and Asset Preservation
This measure targets commercial bank customers and state financial institution (SFI) borrowers. It expands eligibility to include those with overdue payments of more than one year, although participation from this group is anticipated to be limited. Additionally, borrowers with a payment history of 1 to 30 days who have undergone debt restructuring since January 1, 2023, will also qualify. The BOT estimates that around 1.06 million accounts, with a total debt of approximately 380 billion baht, will benefit from this initiative.
2. Debt Closure
This measure increases the debt closure limits from 5,000 baht to a range of 10,000 to 30,000 baht. Unsecured loans will be capped at 10,000 baht, while secured loans can go up to 30,000 baht. This is particularly targeted at vulnerable groups, including those with housing loans, SMEs, and vehicle loans. The BOT aims to simplify the repayment process by allowing borrowers to settle their debts with reduced payments, thus providing an effective way for them to clear their obligations.
3. Restructuring Unsecured Loans
For non-performing loans (NPLs) not exceeding 50,000 baht, this measure will convert outstanding debts into term loans with monthly payments set at 2% of the principal amount. This approach is intended to ease the financial burden on borrowers while allowing them to significantly reduce their debt over a three-year period.
The BOT anticipates that these measures will facilitate access to credit for approximately 1.4 million accounts, with an estimated total debt of 61 billion baht. The overall goal is to stabilize the financial situation for borrowers and prevent further financial distress.
Furthermore, the BOT plans to communicate these new measures to the Ministry of Finance in May 2025, with hopes of receiving government approval by June. Once approved, the BOT will officially announce the details of Phase 2 of the 'Koon Suay Helps' program.
In the context of the previous phase, which began on December 12, 2024, the program has already seen significant participation. As of April 24, 2025, approximately 1.6 million accounts had registered, covering around 1.3 million borrowers. Of these, an estimated 530,000 borrowers, or 27% of those eligible, could potentially benefit from the program, amounting to a total debt of 385 billion baht.
Despite these efforts, the National Credit Bureau reported that only about 270,000 borrowers have successfully completed the program, representing 14.2% of those who registered. The total amount of debt covered under the program is approximately 300 billion baht, which is about 34% of the eligible debt.
The BOT's proactive approach in extending the 'Koon Suay Helps' initiative reflects its commitment to supporting borrowers during these challenging times. With the economic landscape continuously evolving, the need for such measures is more critical than ever. The BOT's focus on helping vulnerable groups underscores the importance of financial stability for both individuals and the broader economy.
As the situation develops, stakeholders will be watching closely to see how these measures impact borrowers and the overall financial health of the nation. The BOT's continued engagement with financial institutions and the government will be crucial in addressing the needs of those struggling with debt and ensuring that the support provided is effective and far-reaching.
In summary, the Bank of Thailand's Phase 2 of the 'Koon Suay Helps' initiative aims to provide essential financial relief to borrowers facing difficulties, with a focus on inclusivity and comprehensive support. As the program unfolds, its success will depend on the effective implementation of these measures and the ongoing collaboration between the BOT, financial institutions, and the government.
