Thailand’s central bank has disclosed that digital innovations, such as online meetings, will be implemented to help facilitate debt restructuring negotiations.
The Bank of Thailand (BOT) indicated the move through a memo, saying digital technology will be leveraged with juristic persons, SMEs and personal loan takers.
The BOT said it aims to provide greater convenience for borrowers by streamlining the process in a way that does not require physical meetings and conforms with the government’s health safety measures.
The central bank also noted that it plans to further develop its existing digital solutions to handle future financial transactions as Thailand transitions into a digital economy. The memo added that the implementation will take into consideration risk factors, as well as the readiness of entrepreneurs and borrowers.
To that end, the BoT has granted permission for organizations under its jurisdiction to use digital authentication methods in order to verify loan takers via databases and mobile applications.
Additionally, it said negotiations related to debt restructuring and term adjustments can be conducted electronically. Financial institutions, however, must also produce negotiation logs for reference.