BOT Postpones Implementation of TFRS 9 for Specialized Institutions
BOT issued a notification setting out rules on the preparation of accounts and financial reports for specialized financial institutions. As per the notification, the implementation period of Thai Financial Reporting Standard on Financial instruments (TFRS 9) has been postponed. If any specialized financial institutions wishes to comply with TFRS 9, the institution shall discuss the financial statement format with BOT and comply with the relevant rules stipulated by BOT for financial institutions. Until the regulations regarding TFRS 9 are announced for specialized financial institutions, these institutions must continue to make preparations in various areas to support TFRS 9 compliance.
Specialized financial institutions are the state-owned financial institutions established with each specific law, whose duties are to serve the government policies in promoting economic development and supporting investment. They are under the Ministry of Finance's supervision and BOT is empowered from the Ministry of Finance to engage in examination of their performances and risk-associated businesses.
In a separate notification, BOT announced that the government has enacted an Emergency Decree on Assistance and Rehabilitation of Business Operators affected by the COVID-19 to create additional liquidity for business operators. The Decree includes measures to reduce the debt burden of business operators by giving the business operator an opportunity to transfer assets, pay debts to financial institutions with a condition to buy back at the transferred price, and have the right to lease such assets back to operate the business to prevent liquidity issues or default on debt repayment. BOT also issued guidelines for the exemption of fees for implementing measures under the Emergency Decree.
Related Links (in Thai)
- Notification on Rules for Specialized Financial Institutions
- Rules for Specialized Financial Institutions (PDF)
- Notification on Emergency Decree Assistance
- Emergency Decree Assistance (PDF)
- Notification on Guidelines for Exemption of Fees
- Guidelines (PDF)
- Entities Under BOT Supervision (PDF)
Keywords: Asia Pacific, Thailand, Banking, Specialized Financial Institutions, TFRS 9, COVID-19, Credit Risk, Loan Repayment, Financial Instruments, IFRS 9, BOT
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