Mr. Ekniti Nitithanprapas, Deputy Prime Minister and Minister of Finance, announced the results from the meeting of the Economic Policy Committee, stating that the committee approved the “Project to Resolve Retail Bad Debt through Debt Purchase Mechanisms by Asset Management Companies (AMC)” to provide a sustainable solution to public debt problems.
Mr. Ekniti said the Ministry of Finance is working closely with the Bank of Thailand (BOT) and the Thai Bankers’ Association to assist debtors classified as non-performing loans (NPL) and unsecured debtors from the past up to September 30, 2025. The program will cover debts not exceeding 100,000 baht per person, totaling about 4.76 million accounts from approximately 3.5 million debtors, representing a total debt of around 122 billion baht.
Mr. Ekniti added that two asset management companies participating in the project are Sukhumvit Asset Management Company Limited (SAM) and Ari Asset Management Co., Ltd. The AMCs will restructure the debts in a flexible manner, reduce debt burdens, and allow debtors who wish to close their accounts to do so quickly. Centralized debt management will enable disciplined debtors to re-enter the credit system through the mechanism of the Government Savings Bank.
Mr. Vitai Ratanakorn, Governor of the Bank of Thailand (BOT), added that there are 4.76 million NPL accounts under 100,000 baht. In the initial phase, a “phase” approach will resolve 1.9 million accounts, with a total value of around 44 billion baht, using residual funds from the “Khun Suu, Rao Chuay” – or You Fight, We Help” project, which comes from a reduction in FIDF contributions, requiring no government budget.
These accounts will be transferred to a BOT subsidiary, Sukhumvit Asset Management Company Limited (SAM), for 1.6 million accounts, and a joint venture between Bangkok Commercial Asset Management Public Company Limited (SET: BAM) and the Government Savings Bank for approximately 300,000 accounts, totaling 1.9 million accounts.
“Debtors can choose from several repayment options: a lump sum payment or annual installments without interest, but at a significantly reduced amount. This measure will be implemented only once to prevent future fiscal and financial discipline issues,” Mr. Vitai stated, adding that the matter will be submitted to the Cabinet for consideration.
Mr. Vitai further noted that the debt purchase price will be negotiated with commercial banks, with a profit-sharing structure for the recovered debts. The exact figures have not yet been disclosed, but he confirms they are in line with industry standards.
Mr. Payong Srivanich, Chairman of the Thai Bankers’ Association, stated that this is the first time the debt resolution approach focuses on “structure,” putting debtors at the center, not merely managing individual debts. The same principle will be extended to entrepreneurs through market mechanisms, with comprehensive database development required to increase opportunities for debtors to escape the debt trap more quickly. The next phase will also expand support to non-bank groups soon.
