Bangkok: The Government Savings Bank (GSB) has announced a significant initiative to assist those impacted by severe flooding in southern regions by implementing an automatic three-month debt moratorium. This measure allows borrowers to defer their principal payments, which will be added to the final payment, while interest accrued during this period will be waived.
According to Thai News Agency, Ms. Lapawan Chankrachang, acting President of the GSB, highlighted that the measure was introduced in response to heavy rains causing flash floods, which have adversely affected the lives and properties of citizens. The initiative aims to relieve the financial burdens of over 100,000 GSB customers. The decision was made after consulting preliminary reports from the Department of Disaster Prevention and Mitigation (DDPM), which declared several areas as disaster zones.
The debt relief package covers all loan debtor groups, with some exceptions as per specified conditions. Key aspects include automatic suspension of principal and interest payments for three months for those residing or working in affected zones. Interest during this suspension will be waived, and postponed principal payments will be included in the final settlement. Additionally, debtors unable to close their accounts can opt for debt restructuring without affecting their credit history.
Eligible customers will receive SMS notifications from the bank. At the end of the suspension period, the bank will inform customers one month in advance to resume payments as per original agreements. Customers who choose to continue payments during the suspension can do so, with payments reducing the principal amount directly.
Furthermore, the GSB has adjusted promissory note conditions for business loan debtors affected by the floods. Those with non-NPL status and affected residences or workplaces can extend due dates for promissory notes maturing between November 19 and December 30, 2025, by 90 days, with interest terms unchanged.
The GSB reiterates its role as a social bank, committed to supporting its customers through financial challenges during this crisis, and hopes for a swift recovery for all affected by the floods.