Bangkok: The Bank for Agriculture and Agricultural Cooperatives (BAAC) is actively implementing the government’s “Quick Big Win” measures aimed at alleviating debt and boosting farmer income. The BAAC’s current Non-Performing Loan (NPL) ratio stands at 6.10%, which is below the projected plan and the year-end target of 5.17%. The final year of the debt relief initiative is set to commence its loan review process on October 1st, with 1.4 million participants still involved, holding outstanding debts amounting to nearly 240 billion baht.
According to Thai News Agency, Chatchai Sirilai, President of BAAC, discussed the ongoing debt relief efforts aligned with the Quick Big Win policy, expressing anticipation for the government’s final policy announcement. He emphasized that these efforts are part of a broader strategic plan to generate additional income and promote agricultural product processing and connectivity, ultimately aiming to elevate farmer incomes.
The BAAC acknowledges the persistence of debt issues, particularly among elderly farmers and those yet to settle their debts. Although preliminary support measures have been prepared, the bank awaits further instructions from the government. BAAC assures its readiness to act swiftly upon policy clarification.
For senior debt measures, BAAC is preparing data and various options for the board’s consideration, to be discussed following the government’s policy statement. Initial plans will target seniors aged 70 and above, as well as those lacking collateral. Approximately 40,000 such customers are identified as chronically indebted, with a budget exceeding 10 billion baht allocated for their support.
Analyzing the potential impact of the recent US import tariff announcement, BAAC’s Risk Management Committee determined that several agricultural products might be affected, although no direct impact has been felt yet. Some products could benefit, and specific government support measures could mitigate negative effects.
Despite the uncertainty, BAAC has developed contingency plans to support customers and manage the NPL rate across specific segments. As of September 20, 2025, the NPL ratio was 6.10%, attributed to improved loan quality and interest rate reductions that facilitated customer repayments, with a year-end target set at 5.17%. The NPLs are on a declining trend, with a better-than-expected debt collection rate. Adjustments to interest income were necessary over the past six months due to the use of debt management tools.
In alignment with government policy, BAAC is conducting a final assessment of its loan portfolio to extend the debt suspension period for another year, starting October 1, 2025. Currently, 1.4 million customers are involved in the debt suspension measures, with nearly 240 billion baht in outstanding debt, down from 1.8 million customers and 286 billion baht at the start.
Mr. Paisarn Hongthong, Deputy Managing Director of BAAC, disclosed that the bank has issued 1.678 trillion baht in loans, slightly below the original plan of over 1.7 trillion baht. This is typical during the lending season, and the quality of NPLs remains satisfactory. The slight decrease in loan disbursement prompted BAAC to enhance its low-risk loan portfolio for debt repayment, focusing on rural development and involving village health volunteers, subdistrict headmen, village chiefs, network partners, and educational personnel. This strategy aims to ensure loan disbursement objectives are met by year-end.
Overall, deposits have decreased slightly by 20 billion baht from 1.9 trillion baht since the start of the year. This aligns with expected seasonal patterns during August and September when government disbursements are high, while the new budget is pending. The BAAC Board has approved a deposit issuance plan through the end of the year to accommodate maturing deposits and attract new customers, targeting over 2 trillion baht in deposits by year-end.