Thailand: New Default Interest
The Notification of the Bank of Thailand No. SorGorSor. 2.9/2563 Re: Calculation of Default Interest and Application of Proceeds and the Royal Decree Amending the Civil and Commercial Code 2021 were enacted in the second and third quarters of 2021 with an aim to reshape the lending framework in Thailand. This article provides details of the amendments and discusses practical issues and remaining uncertainties in interpreting the law in relation to default interest. The authors also discuss how the amendments may lead to different practices and positions in drafting loan agreements.