Bangkok: The Cabinet has approved the extension of the "Direct payment of assets - Final payment" scheme until September 30, aiming to alleviate the financial burdens faced by citizens.
According to Thai News Agency, Mr. Phao Phum Rojanasakul, Deputy Minister of Finance, detailed the measures in place to assist those in debt. Measure 1, which involves direct payments, targets individuals who have defaulted since October 31, 2024. This measure involves restructuring debt to facilitate easier repayment terms. Initially, 50% of the debt will be deferred in the first year, meaning if someone owes 10,000 baht, they will only need to pay 5,000 baht, and if they owe 5,000 baht, they will pay 2,500 baht. In the subsequent years, the repayment percentage increases to 70% in the second year and 90% in the third year. During this period, there will be a complete interest break, with every payment being directly applied to the principal. If the conditions are met over the three-year span, all suspended interest will be waived completely.
The second measure focuses on debt repayment. For small personal debts, if by October 31, 2024, the unsecured debt does not exceed 10,000 baht and the secured debt does not exceed 30,000 baht, individuals can engage in a bank project to settle the debt. By paying only 10%, the debt will be considered fully paid.
Moreover, the Cabinet has agreed to extend the measure's duration from its current expiration date to September 30, 2025, allowing citizens to enroll in the program through both state and private banks. Presently, there are 1.4 million registrations, with 630,000 individuals meeting the qualifications, totaling a debt amount of 460 billion baht. The Cabinet's decision to expand the criteria is expected to increase participants to approximately 1.8 million people, adding an additional 310 billion baht in debt. This initiative reflects the government's commitment to addressing public debt, ultimately easing individuals' financial obligations and positively impacting the economy.