Finance Ministry to extend debt restructuring scheme beyond end of June
Finance Ministry to extend “You Fight, We Help” debt relief scheme beyond June, easing criteria for loan defaults and settlement options.
The Finance Ministry plans to adjust two key measures under the “You Fight, We Help” debt restructuring programme to offer greater support to borrowers, and to extend the scheme beyond its original end date of 30 June, Deputy Finance Minister Paopoom Rojanasakul said.
Cabinet Approval to Be Sought
Paopoom stated that the ministry intends to revise the eligibility criteria for the programme’s key measures and will submit the proposed changes to the Cabinet for approval by next month, along with a request to extend the programme’s deadline.
Two Main Measures: Interest Moratorium and Debt Closure
The two central measures under the programme are:
- “Jai Trong Kong Sup”: a three-year interest moratorium
- “Jai Pid Job”: a final settlement option allowing borrowers to close their accounts with a lump-sum payment
For the Jai Trong Kong Sup measure, eligibility criteria will be adjusted. Instead of requiring a 30-day default, borrowers who have missed even a single payment (one-day default) will now qualify.
Eligible debtors include:
- Home-for-cash customers with a debt ceiling of 5 million baht
- Car mortgage borrowers with a debt ceiling of 800,000 baht
- Motorcycle loan customers with a debt ceiling of 50,000 baht
- SME loan recipients with a ceiling of 5 million baht
Those eligible will be exempt from interest payments for three years, and their installments will be reduced as follows:
- 50% of the usual payment in the first year
- 70% in the second year
- 90% in the third year
Final Settlement Terms to Become More Inclusive
For the Jai Pid Job measure, the threshold for non-performing loans (NPLs) will be raised:
- From 5,000 baht to 10,000 baht for unsecured debts
- Up to 30,000 baht for secured debts
Under this measure, eligible debtors will be allowed to pay just 10% of their outstanding balance, after which their loan account will be considered closed, Paopoom explained.
Strong Interest Prompts Extension
Paopoom added that the “You Fight, We Help” programme has received a strong response from the public. If the Cabinet approves the proposed changes, the scheme will be extended beyond 30 June.
