GSB debt moratorium renewed for 3 months

GSB debt moratorium renewed for 3 months

Borrowers to enjoy flexibility until Dec 31

Customers maintain social distance while waiting in the queue at a GSB branch. (Photo by Varuth Hirunyatheb)
Customers maintain social distance while waiting in the queue at a GSB branch. (Photo by Varuth Hirunyatheb)

Government Savings Bank (GSB) has extended its debt moratorium programme a further three months to help borrowers with their burden during the ongoing economic crisis.

The move is in line with the Bank of Thailand's policy for specialised financial institutions to consider assistance measures to help borrowers reeling from the pandemic, said president and chief executive Vitai Ratanakorn.

GSB earlier introduced an automatic six-month suspension of principal and interest repayment from April 1 to Sept 30.

Since GSB borrowers and the general public are still suffering knock-on effects from the pandemic, the bank is extending the debt moratorium until Dec 31, Mr Vitai said.

GSB also has an option for borrowers who don't want to enter the debt moratorium programme or who wish to exit the programme, with three repayment plans available.

Borrowers can state their intentions and request a debt repayment plan via the MyMo app from Sept 9 to Dec 31.

The three debt repayment plans are suspending 100% of principal repayment and repaying interest on a monthly instalment basis under conditions of the loan agreement or debt restructuring agreement; repaying 100% interest and 50% principal; or repaying through monthly instalments based on the loan agreement or debt restructuring agreement.

Once a borrower requests one of the debt repayment plans on MyMo, it will become effective the next day, Mr Vitai said.

The bank will expand debt repayment plans to other channels in the future, he said.

GSB reported a first-half net profit of 5.22 billion baht. Full-year net profit is forecast at 12-13 billion baht, which would be lower than last year's 24.2 billion baht and 2018's 30.8 billion baht.

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