Thailand's Central Bank Considers Major SME Debt Relief

Thailand's central bank is developing a new credit guarantee program. The plan aims to help small and medium-sized enterprises (SMEs) struggling with debt. The Bank of Thailand (BOT) is currently discussing the measure. It would act as a safety net for financial institutions that offer debt relief to SMEs. This guarantee could encourage more banks to participate in government-led assistance programs. Many Thai SMEs face severe financial stress. High household debt and slow economic growth have reduced consumer spending. This has hurt small businesses across the country. The proposed guarantee is part of a broader national strategy. The government is pushing for a major debt restructuring initiative. The goal is to help "quality" SMEs that are viable but currently unable to repay loans. No final decision has been made. The BOT is analyzing the potential impact and design of the program. Further details are expected after the central bank's review is complete.