Economies across the globe have been rattled by the outbreak of the COVID-19 pandemic that brought many businesses to a standstill. Government intervention has played an important role in navigating this bumpy road to help businesses and individuals stabilise and rebuild.
Call for the Government to Reduce Property Buying Costs
The intention is for debtors and creditors to work together to help overcome the financial impact of the outbreak. In Thailand, transfer fees have been reduced to 0.01% for instances where the debtor transfers the property to repay a debt. This staggering low rate will help ease the burden associated with debts and stimulate property transactions.
“If a debtor wants to transfer real estate to repay the debt, there will be no costs because they receive a discount on the transfer”, said the source
This measure was implemented by the Revenue Department in a bid to help debt restructuring. Additionally, the Bank of Thailand has tried to help businesses by placing assets of financial institutions in debt into temporary storage.
Get to Grips with the Payment Terms for Thai Property
To achieve this debt restructuring, a debt certificate must be prepared and the restructuring must be under rules and procedures set out by the Bank of Thailand and is one measure aimed to help businesses recover from the damage of the global pandemic.
For property purchases, the incredibly low transfer fee is aimed to have a positive impact on debt restructuring and to stimulate the market for both buyers and lenders as the transfer fee discount is applied to the loan when the property transfer takes place.
A resolution was adopted by the Cabinet of Minister in January and March 2020 to reduce the transfer fee to assist debtors and especially small and medium enterprises affected by the pandemic. After the announcement, the Director-General of the Department of Revenue helped with debt restructuring focusing on debtors who have not received credit.
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