Thailand Launches Debt Relief Plan for Small Businesses
Thailand is expanding its debt relief programme for struggling small businesses to include customers of state-owned banks starting in the second half of 2025, using asset management companies to restructure non-performing loans.
Deputy Prime Minister Ek Niti Nitithanprapas unveiled plans to tackle debt problems facing small and medium-sized enterprises (SMEs) in the second half of 2025. The Finance Ministry has consulted with Bank of Thailand Governor Sethaput Suthiwartnarueput to extend the "Close Debt, Move Forward" programme to customers of state-owned financial institutions. To support the initiative, the ministry will reduce contributions to the Special Financial Institution Development Fund (SFIF), following the model used previously with private banks, which reduced contributions to the Financial Institutions Development Fund (FIDF).
Nitithanprapas explained that debt management for state financial institution SMEs could take several forms, including establishing a new asset management company (AMC) to take on and manage non-performing loans, or leveraging existing AMCs operated by state banks. He noted that the goal extends beyond simply removing bad debt from the system—it aims to restructure debt and allow viable business owners to resume operations and generate income to repay their obligations.
"We ran this programme during the first Anuchin government and transferred debt to Sukhumvit Asset Management Company. What we will add now is support for state banks," Nitithanprapas said. "The previous programme worked through commercial banks using FIDF contributions, but we will reduce contributions from the state bank fund to run a similar debt relief scheme."