They said such a move would delay the process of approving credit rather than speeding it up and would also increase bad debts.

However, the bureau will in the future collect only debtors' payment records covering loan principal and accrued interest. It will stop recording the payment or non-payment of debt-following fees, in line with legal requirements and "to help some debtors to breathe".

The decisions came at a meeting yesterday between the NCB, the Bank of Thailand and other relevant parties, including the Thai Bankers' Association, the Credit Card Club and associations of hire-purchase and leasing companies. The meeting was a response to an informal proposal from NCB chief executive Niwat Kanjanaphoomin, who said a relaxation of the track-record period would help debtors access loans more easily in present economic conditions. He made the proposal after some property developers suggested the form of amnesty.

Sorasit Soontornkes, senior director of the Bank of Thailand's Supervision Group, said representatives from relevant agencies agreed the NCB should not reduce the track-record period from three to two years, nor should it remove from the record the names of debtors owing less than Bt20,000, as requested.

He said current criteria allowed commercial banks and other organisations to receive information quickly enough for rapid credit approval. If the track record is shortened, creditors will have to take more time to get the missing information from debtors, leading to delays in credit approval.

"A reduction in the track-record period would result in difficulties for credit approval, which is unfair for good debtors. It would not ease up the process as claimed or guarantee that creditors would be able to access the information better," he said.

Sorasit, who is also secretary of the NCB's committee, said that at present, debtors of good quality with sufficient information usually get fast loans. However, creditors also want to provide loans to debtors with a slightly lower credit rating and say they are willing to approve loans for bad-credit debtors that have reformed their behaviour.

In the past, non-performing loans increased largely because financial institutions lacked information about debtors' track records.

Sorasit said creditors needed sufficient information to consider some kinds of loan applications, such as non-collateral loans, including advances for credit cards and personal loans, as well as for housing loans. A lack of data could cause difficult credit approval.

"The maturity period for mortgage loans is about 15-20 years, so the banks need to access a long historical record of customers' payments," he said.

Anoma Srisukkasem

The Nation