Bangkok: The Treasury Department is actively pursuing solutions to alleviate the burden of bad debts affecting the public. Pichai Chunhavajira, Deputy Prime Minister and Minister of Finance, has announced plans to meet with the Thai Bankers Association to explore potential strategies, including the establishment of an Asset Management Company (AMC) to manage these debts and mitigate the problems of non-performing loans (NPLs).
According to Thai News Agency, Mr. Pichai emphasized the importance of the upcoming meeting with the Thai Bankers Association, which will focus on addressing debt obligations across several banks. The goal is to identify innovative methods to manage debt by learning from past experiences, specifically the 1997 economic crisis, to effectively separate good debt from bad debt. This separation is seen as a critical step in addressing and resolving the issue.
Mr. Thaksin Shinawatra, former Prime Minister, has proposed that the government consider buying back bad debts as part of a broader debt restructuring strategy. This approach would involve negotiations to extend debt terms and reduce interest rates, ensuring that both lenders and borrowers can sustainably navigate their obligations. The meeting with the Thai Bankers Association will delve into these proposals, with the potential creation of an AMC being a key topic. This initiative may also include collaboration with private sectors interested in joint debt management and exploring lending strategies during periods of reduced interest rates.
