BoT clarifies loans under debt restructuring schemeThe Bank of Thailand insists that banks, under the new financial accounting standard, can extend fresh working capital loans to commercial loan defaulters who are in the debt restructuring process without loan-loss provision requirements for the new loans. The Bank of Thailand's move aims to help business operators who are in the debt restructuring process to better access fresh funding amid the sluggish economy. "Hopefully the debt restructuring scheme will help business operators, particularly small and medium-sized enterprises (SMEs), that have business potential to survive," Mr Jaturong said. Mr Jaturong said the central bank sent a circular to banks for better understanding of the debt restructuring scheme, hoping to persuade them to provide additional credit lines to SMEs. "For next year, banks should pay more attention to the existing loan portfolio and restructuring debt classified as Stage 1 and Stage 2," he said.

Source: Bangkok Post October 10, 2019 00:27 UTC