In response, the government is proposing a comprehensive solution, which includes a three-year interest waiver and an extension of the principal repayment period for affected borrowers.

At a recent press briefing, Pichai outlined the government’s strategy to restructure the debts of individual debtors. The initiative aims to achieve two key objectives: enabling borrowers to repay their existing debts and facilitating their access to additional loans.

He said the program would target debtors who have recently started facing hardship, particularly those whose payments are more than 30 days but less than 90 days past due. Some attention may also be given to those who are in arrears for up to a year, as they are still seen as potentially recoverable.

The proposed guidelines state that project participants will not be required to pay interest for three years. The government aims to work with the banking sector to cover interest charges that will not be collected during this period. Thus, borrowers will only repay the principal, which will be reduced by half compared to the previous amount, with an extended repayment schedule.

Pichai noted that these debtors remain classified as non-performing customers and that banks will evaluate each situation individually to determine their eligibility. Preliminary discussions with commercial banks reportedly resulted in general agreement on the proposed guidelines, paving the way for further dialogue to arrive at effective solutions.

Additionally, discussions are expected to take place with the Bank of Thailand (BOT) to consider easing the loan-to-value (LTV) ratio, allowing more people to access housing loans.