Witai points out that the Bank of Thailand is independent but ready to cooperate in the Social AMC's mission to solve debt problems.

Vitai Ratanakorn, Governor of the Bank of Thailand, emphasized his independence from politics but the ability to work together. He is working to resolve household debt through social media platforms, with a conclusion expected in October 68. He also emphasized the impact of gold trading via apps on the strong baht.

October 10, 2568 Mr. Vitai Ratanakorn, Governor of the Bank of Thailand (BOT) He spoke to the media for the first time after taking office at the Governor Connect event No. 1/2568, revealing that the issue of solving household debt through the Asset Management Company (AMC) policy was a topic discussed since the first day of taking office.

Social AMC to solve debt problems below 1 baht, conclusion in October 68

Which allows AMC to help with bad debts of less than 100,000 baht, which are more than 3 million in 4 groups of debtors. That is, commercial bank debtors, financial institutions that are subsidiaries of commercial banks, state-owned specialized banks, and non-bank financial institutions are a joint effort between the Ministry of Finance, the Bank of Thailand, and the Thai Bankers' Association.

Discussions are underway to reach a conclusion. The main objective is to purchase bad debts to restructure them, with very lenient conditions to achieve rapid debt repayment. This will help resolve past bad debts, avoiding financial discipline and preventing moral hazard.

"This is not a national AMC, but rather a project managed through Sukhumvit Asset Management Co., Ltd. (SAM), which will be transformed into a social AMC to address debt. A final decision on the format will be reached by the end of October 68, which will then be submitted to the government for further steps. We hope to see it complete and operational by early 2569, with some select groups likely to be selected for implementation."

The funds to be used for this NPL purchase will come from the remaining funds from the "You Fight, We Help" project, which closed on September 30, 2568. This fund was derived from the Financial Institutions Development Fund (FIDF), which temporarily reduced the remittance rate for financial institutions from 0.46% to 0.23%. A further portion will be provided by commercial banks. The remaining funds from this project and the amount to be added to Social AMC via SAM are yet to be finalized.

Keep an eye on the strong baht and keep an eye on gold trading via apps.

Mr. Witai stated that the Bank of Thailand (BOT) is prioritizing the strengthening baht. The baht has appreciated by 4.5% since the beginning of the year, a decrease from the previous period. The BOT is prepared to monitor the baht's movements appropriately and will intervene if there are any undesirable funds or suspicions regarding currency movements, and will monitor the situation.

However, when it comes to unsettled money, no single agency has enough data to see the whole story. Data must be pieced together, as each factor has a different effect on the value of money.

This Gold is an Amplifier หรือ Currency movement amplifier In particular, gold trading via applications in Thai baht increases the purchasing power of Thai baht, which is not related to the trading of gold bars or jewelry.

"Trading gold in baht creates buying power for baht when the price of gold rises. We are currently discussing this matter with the Ministry of Finance and gold shops. We will not issue unnecessary policies and will proceed with caution."

Haven't considered setting up a Sovereign Wealth Fund yet.

The idea of ​​establishing a Sovereign Wealth Fund (SWF) has no effect on weakening the baht, as the reserve funds are in the form of foreign currencies such as US dollars. In addition, it is a fund set up in baht to buy dollars, but in reality, there is no such lump sum. Therefore, establishing an SWF to weaken the baht is incorrect according to theory.

"As for whether to establish a SWF, I don't have any thoughts at this time. However, if a proposal is made, I might consider it. But right now, there's no such idea. The Bank of Thailand already has reserve management, and it's very complex."

Mr. Witai revealed that The Bank of Thailand's working guidelines and key policy directions in the future are summarized as follows:

Continuing the central bank's core mission of maintaining long-term economic and financial stability.

• Financial stability, particularly maintaining medium-term inflation at a low and stable level, preventing deflation and allowing inflation to return to the target range in the medium term.
• Stability of the financial institution system: Strong and stable financial institutions are able to continuously provide services to debtors, the public, and businesses, and to prevent vulnerabilities in the financial system that could escalate into future crises.
• Stability of the payment system, ensuring that the system is efficient and meets the needs of citizens, businesses, and the government in terms of convenience, speed, security, and reasonable prices.

The BoT will implement policy independently under the legal framework. In many areas, it will require increased collaboration with relevant agencies, both public and private, to advance policy. Furthermore, it will emphasize policy coordination to support the economy and facilitate tangible structural solutions that will enhance the country's potential.

"We will remain committed to maintaining macroeconomic stability, maintaining low but stable inflation, strengthening the financial system and financial institutions, and maintaining a stable payment system. We must remain independent from political pressure, while remaining committed to working with all agencies. We will implement targeted measures to care for the people and remain close to them."

For the BoT's important policy directions (policy priorities) in the next phase, they include:

1. Continuing the financial sector development policy, particularly laying the foundation for the financial sector to be ready to cope with the new global trends in both digital and environmental sustainability (financial landscape), such as the Your Data project, developing an efficient, secure, flexible digital payment system, and supporting the real economy to have more access to financial services, including the establishment of a Virtual Bank.
2. The BoT's work will be closer to the public and society by listening to public perspectives and demands from all sides to inform policy decisions and communicate more effectively to the public. Furthermore, it will develop policies to assist individuals and businesses appropriate to the situation, such as debt relief for vulnerable groups, increasing access to formal loans for SMEs at reasonable costs through a more efficient and flexible credit guarantee mechanism, and setting interest rates that balance borrower risk (Risk-Based Pricing (RBP)). Furthermore, it will review financial service fees to ensure fair pricing.

"The BoT hopes that implementing its mission, coupled with its policies and measures, will help the Thai economy achieve balanced growth and reach its potential, ensuring maximum benefit for both the people and the nation."

In addition, Promote financial literacy in both saving and spending. In addition to teaching how to save money, we must also teach how to spend money. Such as online shopping that may be purchased every day.

“The BoT is monitoring the Buy Now Pay Later initiative on shopping platforms, and if it deems it necessary to take action, we will not refuse to take action.”

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