BANGKOK: Thailand’s central bank on Friday introduced additional debt relief measures, including interest rate cuts by 2-4 percentage points for credit cards and personal loans, to help debtors during the coronavirus outbreak.
The maximum interest rate for credit cards will fall to 16% per year from 18%, while the rates for personal loans will be reduced to 24%-25% from 28%, the central bank said in a statement.
It has also asked commercial banks to prepare capital management plans for the next 1-3 years as the widespread impact of the outbreak on businesses and individuals could affect asset quality.
The management plans should take into account the outlook for the economy and the ability of debtors to do business after the outbreak situation has eased, the governor, Veerathai Santiprabhob, said in a statement.
While working on the new plans, the central bank also asked lenders not to pay interim dividends for their 2020 performance and not to buy back shares, to keep capital levels strong so they can support businesses.
The central bank has recently said the economy could shrink this year more than forecasts. In March, it predicted a contraction of 5.3% this year. – June 19, 2020, Reuters
