Thai central bank winds down COVID era support measures

BANGKOK (Reuters) – Thailand’s central bank on Monday said it would end two policies that were initiated to mitigate the impact of the pandemic, including measures that supported the property sector and corporate bonds.

The central bank will not extend its loan-to-value measures for the property sector, assistant governor Chayawadee Chai-Anant said on Monday.

The central bank last year raised the ratio limit to 100% from a maximum 70-90% to spur activity in the real estate sector.

In a separate statement, the central bank said it will end applications for its corporate bond stabalisation fund this year.

The 400 billion baht ($10.53 billion) fund was launched in 2020 to backstop the corporate debt market and reduce risk.

“The need for support from the fund has declined due to the improving COVID-19 situation,” the Bank of Thailand said.

($1 = 37.9900 baht)

(Reporting by Chayut Setboonsarng and Satawasin Staporncharnchai; Editing by Martin Petty)