Legal Measures to Resolve Non-Performing Debts for Debtors of Financial Institutions According to The Financial Institution Business Act B.E. 2551

Abstract

This academic paper aims to analyze the legal measures to resolve non-performing debts for debtors of financial institutions according to The Financial Institution Business Act B.E. 2551 by adopting the Bank of Thailand’s policy on debt restructuring of financial institutions. The principles of dignity of intent, freedom of contract, fair value principles of debt or collateral, compromise, and the laws of the People’s Republic of China are used as a framework for analysis.

The analysis found that The Financial Institution Business Act B.E. 2551 does not contain provisions to amend debts that do not generate income from financial institutions in relation to debt restructuring. Forced repayment of debts and collateral to protect the rights of debtors and creditors of financial institutions. Therefore, it is necessary to take legal measures to correct debts that do not generate income, receivables of financial institutions. By imposing provisions on debt restructuring. Set permissions Duties Guidelines Procedures for financial institution creditors and related debtors to observe, and the payment of debts must be made in accordance with the fair value of the debt or collateral. Adopt the characteristics of assets or liabilities. Transactions and market prices of collateral come into consideration. In addition, in order to speed up the enforcement process of debt repayment, creditors who are financial institutions with debtors can mediate, settle disputes or restructure debts. Financial institution creditors can be forced to pay off debts against the debtor's collateral by requesting a court without having to file a civil lawsuit.