Debtors of commercial banks or non-bank institutions can now apply for help from the government to reduce their repayment burden under the “khunsoo rao chuay” (you fight, we help) program, created jointly by the Finance Ministry and commercial banks, both private and state-owned.


The program is the result of collaboration between the Finance Ministry, the Bank of Thailand, the National Economic and Social Development Council, the Thai Bankers Association, the International Bankers Association, the Government Financial Institutions Association and others.


According to the Finance Ministry, the program is targeting 1.9 million small debtors and enterprises, with combined total indebtedness amounting to about 890 billion baht. The program is expected to reduce Thailand’s household debt by about 10%.


Debtors can now register for help via, https://www.bot.or.th/khunsoo


There are two measures to help debtors. One is called “jaitrong kongsap” (direct pay, keep assets) and is designed to help debtors with mortgages or car loans and small enterprises through refinancing, to reduce their monthly repayments, and interest moratoria for three years.


Debtors will be required to pay 50% of the principal portion of their monthly repayment obligation for the first year, increasing to 75% for the next year and 90% thereafter, while interest payments will remain frozen for three years on the condition that the debtors are punctual making their repayments and do not seek new loans for the first year of the program.


The second measure, called “pay, close”, is designed to help those who have delinquent debt, not exceeding 5,000 baht, to settle their repayment obligations through refinancing.


According to Finance Minister Pichai Chunhavajira, funding for the “khunsoo rao chuay” program, amounting to about 39 billion baht, will come partly from contributions by commercial banks to the Financial Institutions Development Fund (FIDF) and partly from the 38.9 billion baht compensation fund from the government to six state-owned banks.

Government to help 1.9 million small debtors and SMEs