Kasikorn Securities, in its latest research note citing sources from the Ministry of Finance, revealed that the Thai government is currently considering revising the conditions of the “Khun Soo Rao Chuay” (You Fight, We Help) debt relief program.
The proposed adjustment would broaden the program’s coverage to include both non-performing loans (NPLs) and borrowers who are only one day past due, instead of limiting eligibility to those over 30 days overdue under the original criteria.
This extension marks the first phase of a wider support initiative, with the next phase set to target non-bank borrowers with debts not exceeding THB 100,000, a group that represents more than 3 million accounts.
As of April 24, 2025, the “Khun Soo Rao Chuay” program had attracted a total of 1.6 million registered accounts, covering roughly 1.3 million borrowers.
However, only 530,000 applicants, about 27% of the 1.9 million who qualify, have passed the eligibility review process. The overall qualifying debt amounts to THB 385 billion, representing 43% of the total eligible debt pool. The government has extended the program’s registration deadline until June 30, 2025.
Additionally, discussions are ongoing about further support for borrowers with good repayment records. Measures under consideration include interest rate reductions or the provision of soft loans for refinancing existing debts.
For the second phase, which targets the non-bank segment, additional support strategies are under review. However, alternative funding sources must be identified for this expansion, as money from the Financial Institutions Development Fund (FIDF) cannot be utilized.
Kasikorn Securities’ research team commented that, while these measures may help slow the growth of NPL in the short term, expanding eligibility criteria to include borrowers only one day overdue, as well as those in default for more than a year, could increase the risk of moral hazard in the financial system.
Furthermore, if interest rates are reduced for good borrowers, this could exert pressure on the net interest margin (NIM) of banks going forward. The risk of future regulatory shifts extending from banks to non-bank financial service providers also warrants close monitoring.
