Thai c.bank to introduce more debt measures in October
BANGKOK, Sept.28 (Reuters) – Thailand’s central bank on Tuesday announced plans to introduce debt consolidation measures to help lower interest rates on consumer loans for retail debtors , as the country suffers from its most prolonged coronavirus outbreak to date.
This move is seen as more useful than lowering the ceiling rate on these loans, in an era of high credit risk, as it would push debtors with bad credit to borrow outside the financial system, said Oramone Chantapant, deputy director. from the Bank of Thailand. (BOT).
“What will help debtors a lot is debt consolidation, which will be introduced in the middle of next month and we will also be increasing the incentives,” she said in a briefing.
However, reducing the tariff cap remains a political option, she added.
In June, the government asked the BOT to review interest rates on personal loans and credit cards to ease the burden on people’s interests.
The BOT said it would focus on financial support measures to help debtors, as the central bank governor recently declared interest rates a blunt tool.
Reporting by Orathai Sriring, Kitiphong Thaichareon and Satawasin Staporncharnchai; Editing by Martin Petty
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