The government will submit a two-part debt relief plan to Cabinet for approval on Wednesday (December 11).

The proposed measures aim to ease the financial burden on millions of individuals and small businesses struggling with debt.

Debt Relief Program 1: Interest Waiver for Distressed Borrowers

The first program targets borrowers with non-performing loans (NPLs) of less than one year. Interest on SME, car and property loans will be waived for borrowers who commit to a 12-month repayment plan. In exchange, borrowers must respect strict repayment conditions. The government and commercial banks will cover part of the interest costs to facilitate this relief measure.

Debt Relief Program 2: Small Debt Forgiveness

The second program provides targeted relief for people with small debts. Borrowers with debt below 5,000 baht through credit cards or personal loans will have their debts forgiven. This measure is intended to help those who may have inadvertently fallen behind on their payments.

Facing the NPL crisis

The government’s debt relief measures come as Thailand struggles with a rise in non-performing loans. As of October, the total value of NPLs reached 1.2 trillion baht, affecting nearly 9.6 million accounts. An additional 2.1 million accounts are at risk of not being reimbursed.

Surapon Opassathienpresident of the National Credit Information Company, expressed concern about the growing number of borrowers in difficulty. He noted that many borrowers struggle to obtain additional credit because of their existing debt.