Relief Measure for Financial Businesses with Foreign Business License

In an attempt to support and relieve payment obligations of retail debtors during the 2019 coronavirus outbreak; on 31st August 2020, the Thai Ministry of Commerce issued a Ministerial Regulation for the temporary prohibition of the enforcement of debt to equity ratio for use in business operations of non-bank financial businesses. This temporary measure is in effect until 30th June 2023.

The Ministerial Regulation is issued under the Foreign Business Act B.E. 2542 (1999) (“FBA”) and applies to foreign non-bank financial business operators who would, under the FBA, be required to maintain a debt to equity or D/E ratio of 7:1 as provided in their Foreign Business License (“FBL”). 

The measure aims to enhance liquidity for non-banks receiving credit from financial institutions and providing credit card, personal loan, leasing, hire-purchasing, hire-purchasing of motorcycles or car-for-cash services so that such business operators may relax debt repayment obligations to retail debtors during the 2019 coronavirus outbreak.

Specific rules and conditions will be provided from time to time in the form of notifications by the Director-General of the Department of Business Development and we shall provide updates as soon as announced.

If you have any queries, please feel free to contact us at enquiries@southasia-law.com and we shall revert to you as soon as practicable.


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