On February 13, 2019, Mr. Jaturong Chantharangsu, Assistant Governor of the Financial Institutions Policy Group at the Bank of Thailand (BOT), announced that the second phase of the debt clinic project will expand its services to include credit card and personal loan debts from non-bank operators. This is an extension from the first phase, which only covered debts from commercial banks. This expansion will enhance the project's ability to assist the public more comprehensively, as these types of debts account for over 70% of total debtors. Data from previous debtors who contacted the project indicated a significant number of them had creditors from non-bank institutions.

Currently, at least eight non-bank operators recognize the importance of the project in addressing debt issues for the public and have expressed their desire to participate. These include: 1. General Card Services Co., Ltd. 2. Citicorp Leasing (Thailand) Co., Ltd. 3. Tesco Card Services Co., Ltd. 4. Krungsri Ayudhya Card Co., Ltd. 5. Promis (Thailand) Co., Ltd. 6. Ayudhya Capital Services Co., Ltd. 7. AEON Thana Sinsap (Thailand) Public Co., Ltd. 8. Easy Buy Public Co., Ltd.

It is expected that non-bank debtors will be able to join the debt clinic project by the second quarter of 2019, as it awaits the amendment of laws to allow asset management companies to manage non-performing loans (NPLs) from non-bank operators. This amendment has already been approved by the National Legislative Assembly (NLA).

Additionally, to enhance the project's effectiveness and better assist honest debtors who are committed to resolving their issues, two important criteria have been revised: 1. The eligibility requirement has changed from being in default before April 1, 2018, to being in default before January 1, 2019, and 2. The criteria for assessing repayment ability and methods have been made more flexible and aligned with the individual debtor's situation. The new criteria will take effect from February 14, 2019.

“The highlight of the debt clinic project, aside from being a one-stop service for resolving debts with multiple creditors, is the opportunity for debtors to repay over a maximum of 10 years, which will make the monthly payment burden manageable. From initial inquiries, we found at least 300-400 debtors who previously failed to restructure their debts or could not participate in the project will now be able to successfully resolve their debts under the new criteria, representing an increase of about 30% from the current rate,” said Mr. Jaturong.

Mr. Niyut Masawisut, Managing Director of Sukhumvit Asset Management Co., Ltd. (SAM), and Mr. Surapol Opasthasathien, General Manager of National Credit Bureau Co., Ltd. (NCB), announced that both organizations will sign an agreement whereby NCB will waive the credit report verification fee for debtors who contact and register to join the debt clinic project through SAM's offices, reducing the burden on debtors applying for the project (which typically incurs a fee of 100 baht). They will also work together to improve the verification and data submission process, which will expedite the debt restructuring process and shorten the overall time required.

Since the launch of the debt clinic project, it has provided consultation and debt resolution guidance to 33,900 debtors, with 1,087 debtors successfully restructuring their debts and signing contracts.

 

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