Page 248 - E-BOOK

- Debtors who became non-performing (Stage 3) on or after 1 January 2019, unless the
entity is able to prove that the debtors becoming non-performing before 1 January 2019
are non-performing loans affected by the economic conditions.

An entity providing assistance to affected debtors in accordance with the BOT’s guidelines

applies these following procedures:

(1) For the provision of assistance to loans that are not yet non-performing (Non-NPL), the
Company classifies them as loans with no significant increase in credit risk (Performing

or Stage 1), provided that analysis of its status and business shows that the debtor is
able to comply with the debt restructuring agreement without compliance monitoring and

the debt restructuring is considered a pre- emotive debt restructuring rather than a
troubled debt restructuring. If it is a provision of assistance to debtors in accordance with
the circular of the BOT No. BOT.RPD. (01) C.380/2563, classification of the debtor

remains at the same stage as before.

(2) For the provision of assistance to non-performing loans (NPL), the Company classifies
them as performing loans if the debtor is able to make payment in accordance with the
Annual Report 2020 the longer period.
debt restructuring agreement for 3 months or 3 installments consecutively, whichever is

(3) The guidelines of the BOT relating to assessment of whether there has been a significant
increase in credit risk are applied to assess whether a debtor is moving to Stage 2.
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(4) Expected credit losses are determined based on the outstanding balance of the drawn
down portion only.

(5) If the debt restructuring causes the existing effective interest rate to no longer reflect the
estimated cash inflows from the loan, the Company applies a newly calculated effective

interest rate to determine the present value of loans that have been restructured and
recognises interest income on the basis of this new effective interest rate during the
grace period, or in accordance with the BOT’s new guidelines if there are changes.

(6) In cases where a general approach is used in determining expected credit losses,
consideration is given to placing less weight on forward-looking information that is the
result of the temporary crisis than on information reflecting ability of debt payment from

historical experience.

(7) Consideration is given to placing less weight on forward-looking information that is the
result of the temporary crisis than on information reflecting ability of debt payment from

historical experience, in cases where a general approach is used in determining
expected credit losses.