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.
Daol Securities (Thailand) revealed that the latest household debt resolution measures by the government are a positive factor for the banking system, with expectations that they will help reduce NPLs (Non-Performing Loans) by 20–30% across the system.
Daol expects these measures will lead to a future decrease in retail NPLs, as this round targets mainly unsecured debts. BAM and SAM, state enterprises under the Financial Institutions Development Fund (FIDF), will act as intermediaries.
According to previous information, this project will use an initial budget of THB 10 billion from the remaining funds of the “Khun Suu, Rao Chuay” scheme, which currently has approximately THB 26 billion. Of this, THB 7 billion will be used for debt purchases (equivalent to 5% of the total debts of THB 123 billion), and THB 3 billion will be allocated for management fees to BAM and SAM.
The banks with the highest proportions of unsecured retail loans are TMBThanachart Bank Public Company Limited (SET: TTB) at about 7%, Bank of Ayudhya Public Company Limited (SET: BAY) about 6%, Kasikornbank Public Company Limited (SET: KBANK) about 6%, and SCB X Public Company Limited (SET: SCB) about 5% (including subsidiaries).
Meanwhile, non-bank groups will also benefit as they have a high share of debt to be purchased, especially AEON Thana Sinsap (Thailand) Public Company Limited (SET: AEONTS) and Ngernturbo Public Company Limited (SET: TURBO, Nano finance 20%), Muangthai Capital Public Company Limited (SET: MTC, Unsecured loans 5-10%), Srisawad Corporation Public Company Limited (SET: SAWAD, Consumer loans 3%), as well as BAM, which will directly benefit from this operation.
