BOT Issues Updates on Debt Restructuring and Dividend Payment Policy
BOT published guidelines for debt restructuring to assist business debtors affected by the COVID-19 pandemic. Financial institutions can consider delaying the repayment period based on the debt repayment ability of each debtor. Financial institutions can also consider maintaining the same classification during the deferral of debt repayment, depending on the status of the debtor before availing this measure (no later than December 31, 2021). Financial institutions must also not regard the delay in repayment as a cause for breach of the terms of repayment under the contract.
With respect to its dividend payment policy, BOT has allowed financial institutions to pay an interim dividend not exceeding the dividend payout ratio of last year and of no more than 50% of the first-half net profits of 2021. Financial institutions are still prohibited from buying back their shares and from redeeming or repurchasing financial instruments included in Tier 1 or Tier 2 capital before maturity. To determine the dividend payment policy for 2021, BOT will assess the pandemic situation and the economic recovery trends and will follow up on the progress of financial institutions' debt assistance.
Related Links (in Thai)
- Notification on Guidelines on Debt Restructuring
- Guidelines (PDF)
- Notification on Dividend Payment Policy
- Circular on Dividend Payment Policy (PDF)
Keywords: Asia Pacific, Thailand, Banking, COVID-19, Regulatory Capital, Debt Restructuring, Loan Repayment, Credit Risk, Basel, BOT
Featured Experts

María Cañamero
Skilled market researcher; growth strategist; successful go-to-market campaign developer

Nicolas Degruson
Works with financial institutions, regulatory experts, business analysts, product managers, and software engineers to drive regulatory solutions across the globe.

Nick Jessop
Scenario modeling expert; risk management specialist; quantitative financial modeler
Previous Article
OSFI Outlines Expectations on LIBOR TransitionRelated Articles
ISSB Sustainability Standards Expected to Become Global Baseline
The finalization of the two sustainability disclosure standards—IFRS S1 and IFRS S2—is expected to be a significant step forward in the harmonization of sustainability disclosures worldwide.
IOSCO, BIS, and FSB to Intensify Focus on Decentralized Finance
Decentralized finance (DeFi) is expected to increase in prominence, finding traction in use cases such as lending, trading, and investing, without the intermediation of traditional financial institutions.
BCBS Assesses NSFR and Large Exposures Rules in US
The Basel Committee on Banking Supervision (BCBS) published reports that assessed the overall implementation of the net stable funding ratio (NSFR) and the large exposures rules in the U.S.
Global Agencies Focus on ESG Data, Climate Litigation and Nature Risks
At the global level, supervisory efforts are increasingly focused on addressing climate risks via better quality data and innovative use of technologies such as generative artificial intelligence (AI) and blockchain.
ISSB Standards Shine Spotlight on Comparability of ESG Disclosures
The finalization of the IFRS sustainability disclosure standards in late June 2023 has brought to the forefront the themes of the harmonization of sustainability disclosures
EBA Issues Several Regulatory and Reporting Updates for Banks
The European Banking Authority (EBA) recently issued several regulatory publications impacting the banking sector.
BCBS Proposes to Revise Core Principles for Banking Supervision
The Basel Committee on Banking Supervision (BCBS) launched a consultation on revisions to the core principles for effective banking supervision, with the comment period ending on October 06, 2023.
US Proposes Final Basel Rules, Transition Period to Start in July 2025
The U.S. banking agencies (FDIC, FED, and OCC) recently proposed rules implementing the final Basel III reforms, also known as the Basel III Endgame.
FSB Report Outlines Next Steps for Climate Risk Roadmap
The Financial Stability Board (FSB) recently published the second annual progress report on the July 2021 roadmap to address climate-related financial risks.
EBA Plans on Ad-hoc ESG Data Collection and Climate Scenario Exercise
The recognition of climate change as a systemic risk to the global economy has further intensified regulatory and supervisory focus on monitoring of the environmental, social, and governance (ESG) risks.