The Bank of Thailand expects debtors at non-bank financial institutions to participate in the central bank’s Debt Clinic by the second quarter of this year.
The amended Sukhumvit Asset Management (SAM) Act, which will let non-bank firms transfer bad assets to the asset management company to enable debtors to take part in the Debt Clinic, already passed the legislative process, said Jaturong Jantarangs, an assistant central bank governor.
Eight non-banks have shown interest in joining the clinic: General Card Services Ltd, Tesco Card Services Ltd, Krungsriayudhya Card Co, Ayudhya Capital Services Co, Promise Thailand Co, Citicorp Leasing Thailand Co, Aeon Thana Sinsap Thailand Plc and Easy Buy Plc.
Allowing debtors from non-bank companies to access the Debt Clinic is the scheme’s second phase for the pool of unsecured soured loans from 16 local and foreign commercial banks. The goal is to turn them into performing assets.
SAM is responsible for managing the scheme, targeted at debtors who failed to repay credit, cash card or personal loans with at least two banks for more than three months of a specific period.
The central bank tweaked regulations by allowing defaulters of at least two banks before Jan 1, 2019 to join the Debt Clinic scheme, Mr Jaturong said.
Earlier, multi-bank debtors whose unsecured loans turned sour before April 1, 2018 were eligible to take part in the scheme.
The central bank also revised regulations concerning debt repayment and debt-servicing ability.
