Interestingly, some banks could potentially emerge as net beneficiaries if they receive subsidies for previously provisioned loans.
Compared with the extensive borrower-relief measures implemented during the Covid-19 pandemic, this scheme’s modest scope may have limited effectiveness in addressing Thailand’s substantial household debt, which stood at 90% of GDP as of June. The continuation of regulatory controls, including retail interest-rate caps, suggests a measured approach to debt management.
Thailand’s unique position as one of few Asia Pacific markets extending regulatory relief measures during the post-pandemic recovery period highlights the persistent challenges within…
