BAM announces interest rate reduction of 0.25% for 6 months, hoping to reduce debtors' burden during the economic slowdown.

       BAM announced an interest rate reduction of 0.25% for a period of 6 months, hoping to reduce the financial burden of debtors amidst the economic situation that has not yet fully recovered. The company emphasized the opportunity for all debtors to negotiate debt reconciliation and find a mutual solution with lenient assistance measures.

       Mr. Bundit Anantamongkol, Chief Executive Officer of Bangkok Commercial Asset Management Public Company Limited or BAM, said: “BAM, as a main organization in managing non-performing assets, acting as a retention basin that helps absorb bad debts in the financial system, manages bad debts and turn them into performing ones in the economic system. The company has seen the need to issue additional measures to help debtors during this time when the economy has not fully recovered by reducing the interest rate by 0.25% for a period of 6 months, effective from June 1 to November 30, 2024, for debtors who have restructured their debts and are still paying in installments with BAM. Debtors characterized based on the conditions set by BAM will receive the adjusted interest rate automatically as announced.”

       Mr. Anantamongkol further stated: “This measure will help reduce the interest burden and support the recovery of debtors at the time when market mechanisms are adjusting to equilibrium in the future. This is in line with the government’s aim at driving the economy forward and with continued guidelines of the Bank of Thailand (BoT). BAM recognizes the importance of supporting and helping alleviate the suffering of all groups of debtors.”

        “In addition, on the occasion of BAM's 25th anniversary, there are other projects launched to help debtors such as: Happy to Have Your Home Back project, which allows debtors who have collateral and a principal balance of no more than Baht 25 million to pay off only 80% of the appraisal value, with 0% interest for the first 25 months, with installment plan not more than 25 years; BAM Helps Revive Businesses project for start-up and SME debtors with principal balance not exceeding Baht 25 million per person to repay debts at only 80% of the appraisal value with interest at 0% for the first 25 months and the installment plan not exceeding 25 years; BAM Helps Debtors Resolve Debts project which helps unsecured debtors (after foreclosure of collateral) with principal balance not exceeding Baht 3 million to settle their debt in one go within 90 days or pay in installments within 3 years under flexible conditions; and BAM Helps Farmers Resolve Debts project which helps farmers in debt-restructuring process that enables them to make repayments according to their ability and with lenient conditions. The implementation of such projects is to help debtors move forward and also help the economy return to its sustainably growing status,” said Mr. Anantamongkol.

       Mr. Bundit also elaborated at the end: “BAM gives every debtor an opportunity to negotiate their debt structure to find an agreed solution. The company carries out negotiations on the basis of debtors’ true ability and repayment capacity. Therefore, in the case of new debtors receiving a letter inviting them to reconcile their debts with BAM (Hello Letter), they must immediately decide to contact BAM officials, which BAM is confident that debtors will be supported in finding the best solution to resolving their debts.”