BOT Extends LTV for 1 Year to June 2027 to Aid Real Estate

Thansettakij•Economy•6d ago

Reader Briefing

The Bank of Thailand is extending its Loan-to-Value (LTV) measure for another year until June 2027 to support the struggling real estate sector.

•The Bank of Thailand (BOT) has announced a one-year extension of its LTV policy. The extension will run from July 1, 2026, to June 30, 2027.
•The decision to extend the LTV measure is aimed at helping to revive the real estate market, which is experiencing a continued slowdown and high inventory.
•The BOT cited risks from the Middle East geopolitical situation, increased construction costs, and weakened consumer and business confidence as reasons for the real estate sector's challenges.

Overview

•The Bank of Thailand will extend the LTV policy from July 1, 2026, to June 30, 2027, in order to support the real estate sector.
•The Bank of Thailand stated that the real estate market is experiencing continuous slowdown and high inventory, necessitating this measure.
•The real estate sector faces risks from the Middle East geopolitical conflict, impacting housing demand, construction costs, and consumer/business confidence.
•The Bank of Thailand has prepared a draft regulation to temporarily relax the LTV guidelines for housing loans, extending the current measures.
•The current LTV relaxation measures are set to expire on June 30, 2026.
•The new LTV regulation is currently in its draft stage.
•The extension aims to support the real estate sector's supply chain, which is linked to various economic sectors and employment.
•The Bank of Thailand has consulted with real estate developers, industry associations, and financial institutions to gather feedback on the proposed regulation.

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Source: Thansettakij (Original)

Key Quotes

Bank of Thailand

"This action is to help support the real estate sector, which has a supply chain linked to various economic sectors and significant employment."

การดำเนินการครั้งนี้ เพื่อช่วยประคับประคองภาคอสังหาริมทรัพย์ ที่มีห่วงโซ่อุปทาน (Supply Chain) เชื่อมโยงกับภาคเศรษฐกิจต่าง ๆ และการจ้างงานเป็นจำนวนมาก

Bank of Thailand

"Therefore, the BOT deems it appropriate to issue an announcement regarding the temporary relaxation of LTV regulations for housing and related loans for financial institutions for another year."

ดังนั้น ธปท. จึงเห็นสมควรออกประกาศ เรื่อง การผ่อนคลายหลักเกณฑ์การกำกับดูแลสินเชื่อเพื่อที่อยู่อาศัยและสินเชื่ออื่นที่เกี่ยวเนื่องกับสินเชื่อเพื่อที่อยู่อาศัยของสถาบันการเงินและสถาบันการเงินเฉพาะกิจเป็นการชั่วคราว (เกณฑ์ LTV) เป็นการชั่วคราว อีก 1 ปี

Key Entities

Organization

Bank of Thailand(ธนาคารแห่งประเทศไทย)ℹ️

The central bank of Thailand, responsible for issuing the LTV policy extension.

Law

LTV (Loan-to-Value) regulation(เกณฑ์ LTV)

The regulation governing the ratio of loan amount to property value, which is being extended by the Bank of Thailand.