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Debt suspension approved for businesses affected by state decrees

Debt suspension approved for businesses affected by state decrees

BANGKOK: To aid business operators hit by the COVID-19 pandemic, the government has suspended debt repayments for two months by businesses, and laborers who have had to cease work due to state edicts, while also promising to aid those still active.

COVID-19economics
By National News Bureau of Thailand

Saturday 17 July 2021 10:30 AM


Photo: NNT

Photo: NNT

The Center for the COVID-19 Situation Administration’s (CCSA) economics spokesperson Thanakorn Wangboonkongchana reported yesterday (July 16) that the Ministry of Finance, Bank of Thailand, Bank Association of Thailand and the International Bank Association had collectively decided to suspend debt principal repayments and interest payments by SMEs for a period of two months, reports state news agency NNT.

The aid applies to all businesses nationwide that have been forced to stop due to state measures against COVID-19 as well as their employees, with a particular focus on those in the 10 most restricted provinces. The help applies to payments in July and August, said the report.

Debtors who have continued to operate their businesses but have been affected by restrictions will have their applications for aid considered on a case-by-case basis from July onward.

The CCSA has, however, underlined that the measure is only a delay in payments, with those able to make payments urged to continue to do so to avoid a financial burden in the future, Mr Thanakorn said.

So far, the government has approved aid of B500,000 to 3,000 tourism businesses, drawing on a budget of B1.218 billion, the report noted.

The restaurant credit scheme has provided B100,000 in loans to eateries, and the SME credit scheme has provided B3 million in loans to travel and other enterprises to shore up their liquidity, the report concluded.