The Thai Bankers Association has confirmed measures to assist smallholder farmers, particularly those who are members and registered with the Rehabilitation Fund for Agricultural Debt, classified as NPLs (Non-Performing Loans) as of December 31, 2017, with principal amounts not exceeding 2.5 million baht. These farmers will only need to repay 50% of their principal debt, with the remaining debt being forgiven.
Additionally, legal actions against these debtors will be postponed until June 30, 2019, to ensure that farmers can continue to have land for their livelihoods. It was also noted that there is a need to maintain overall financial discipline and responsibility towards the bank's creditors and depositors.

          Mr. Kobsak Duangdee, Secretary-General of the Thai Bankers Association, stated that the association has submitted a letter confirming the criteria for debt repayment for the Rehabilitation and Development Fund for Agriculture, which has an agreement with the Thai Bankers Association. Farmers who are members and registered with the Rehabilitation Fund as NPLs as of December 31, 2017, with principal amounts not exceeding 2.5 million baht and borrowing for agricultural purposes, can repay 50% of their principal debt to member banks, with the remaining debt being forgiven. Furthermore, legal actions against these debtors will be postponed until June 30, 2019, to help farmers retain their land for livelihood.

          The member banks of the Thai Bankers Association have considered this measure and believe it can significantly assist many distressed smallholder farmers. However, the additional request from the farmers is for member banks to accept 50% repayment of principal for all loan amounts, with the remaining debt being forgiven. The member banks have noted that farmers with principal amounts exceeding 2.5 million baht are already being provided special assistance on a case-by-case basis, and there are only a few such cases, with some having substantial principal amounts that exceed the definition of smallholder farmers.

          Mr. Kobsak further stated that since the government established the Rehabilitation and Development Fund for Farmers (RDF), member banks of the Thai Bankers Association have consistently cooperated with the government. From 2006 to July 2018, assistance has been provided to 3,206 farmers through the RDF, totaling 1.207 billion baht. Currently, there are only 692 smallholder farmer debtors remaining. The member banks have been supportive in reviewing criteria to allow these distressed smallholder farmers to repay their debts directly to the banks under the agreed conditions between the association and the RDF. Additionally, the association has been in continuous discussions with the Ministry of Agriculture and Cooperatives and the RDF to expedite measures for assisting this group of debtors.

However, the Thai Bankers Association must also maintain financial discipline for the overall economy, ensuring fairness and benefits for all parties involved.