Treasury supports state banks to transfer debt to AMC

Bangkok, The Treasury supports state banks in transferring debt to AMCs, increasing flexibility to help debtors, waiting for the BoT's announcement to set up JV AMC, ordering state banks to reduce interest rates. Small help Mr. Pornchai Teerawet, spokesman for the Ministry of Finance, revealed that after the Cabinet (19 December 2023) acknowledged measures to help debtors. outstanding with financial institutions for a long period Therefore, a joint venture between Specialized Financial Institutions (SFIs) and an Asset Management Company (AMC) or JV AMC) was assigned under a system-wide debt solution approach, allowing SFIs to jointly invest in establishing AMCs and transfer some debt. portion of SFIs to JV AMC and streamline debtor assistance By restructuring the debt or writing off some debt to the debtor. Currently, the Bank of Thailand is considering issuing an announcement to set criteria to promote joint investment by SFIs and AMCs in setting up a JV AMC. It is expected that the announcement will be i ssued by January 2024. In addition, the Government Savings Bank is in the process of discussing the establishment of a joint venture. JV AMC with AMC that has expertise and is interested in jointly investing to establish JV AMC, which is expected to be able to begin operations within the first quarter of 2024. In the first phase, it will begin helping debtors of the Government Savings Bank first. and will extend assistance to debtors of other SFIs in the next period. The Ministry of Finance expects that such measures will help the debt restructuring of SFIs' debtors to be more agile and flexible, in line with the government's policy of resolving debt throughout the system in an integrated manner for all groups of people, including the agricultural and business sectors. and the public sector In addition, to be in line with the policy of the Ministry of Finance. Assigned to the State Bank Taking care of and helping the people and in line with the government's policy that wants to solve debt problems for the p eople. Currently, the Government Savings Bank has reduced the retail customer loan interest rate (MRR) from the original 6.995 percent per year to 6.845 percent per year, effective from now onwards. go To help and ease the burden on debtors according to government policy. Source: Thai News Agency