Scheme targets NPLs from state banks
Ari Asset Management Co (Ari AMC), a joint venture asset management company, is preparing to launch the second phase of the “Clear Debt, Move Forward” scheme aimed at resolving bad debts held by state-owned banks.
Established through a partnership between Bangkok Commercial Asset Management and Government Savings Bank (GSB), Ari AMC is coordinating with the Finance Ministry to implement the next phase of the government’s household debt resolution programme.
The company is also evaluating the pricing framework for acquiring non-performing loans (NPLs) from specialised financial institutions (SFIs). Greater clarity on the acquisition structure is expected within three months, while full-scale operations are anticipated to commence in the third quarter of 2026, according to chief executive Suntis Wattanakul.
Under the second phase of the scheme, Ari AMC plans to purchase NPLs from nearly all SFIs, including GSB, SME Development Bank of Thailand, Export-Import Bank of Thailand and Thai Credit Guarantee Corporation, but excluding the Bank for Agriculture and Agricultural Cooperatives.
Mr Suntis said the initiative focuses on small-scale debtors with outstanding liabilities of no more than 100,000 baht. Around 200,000 NPL borrowers are expected to initially qualify for the programme, and the company has prepared sufficient funding to support the operation, he noted.
Ari AMC has registered capital of about 275 million baht, of which 25% has been paid up, while an additional 600 million baht can be called upon when required.
Funding support is also provided through revolving credit facilities from GSB and the company’s internally managed funds.
The first phase of Clear Debt, Move Forward, is being operated by Sukhumvit Asset Management, which is responsible for managing NPLs transferred from commercial banks and their subsidiaries under the scheme.
Mr Suntis said Ari AMC has been operating for around two years, managing GSB’s NPL portfolio under a “Social AMC” mandate aligned with the central bank’s policy objectives. Following a “low profit, high social impact” approach, the company prioritises helping small-scale debtors return to the formal financial system rather than maximising financial returns.
Over the past two years, Ari AMC has managed an initial portfolio of around 120,000 debtors, with average debt obligations ranging between 30,000 and 40,000 baht per person. The company has successfully resolved cases for about 50,000 to 60,000 borrowers, representing almost 50% of participants.
“NPL management for the remaining cases is expected to be completed over the next few years. Ari AMC’s negotiation approach is considerably more flexible than private sector standards, with the aim of helping borrowers exit the debt cycle,” he said.
Debtors are typically offered repayment terms of up to five years, with extensions available for those facing difficulties in meeting repayment conditions. Repayment schedules can also be adjusted throughout the period, including back-loaded payment structures designed to align with borrowers’ improving financial capacity.
In addition, special discounts are offered to debtors who are able to settle their obligations within 30 days.