Possible Amendments to Interest Rate for Commercial Transactions under Thai Law

Author: Yothin Intaraprasong (Co-author)

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Publisher: Nagashima Ohno & Tsunematsu

Journal / Book: NO&T Thailand Legal Update No.9 (March, 2021)

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*Please note that this newsletter is for informational purposes only and does not constitute legal advice. In addition, it is based on information as of its date of publication and does not reflect information after such date. In particular, please also note that preliminary reports in this newsletter may differ from current interpretations and practice depending on the nature of the report.

Background
The Law Reform Commission of the Office of the Council of State (the “Commission”) held a public hearing in relation to the proposed bill of amendment of the Civil and Commercial Code (“CCC”) in relation to the provisions concerning interest rate (the “Bill”) on 18 January 2021. The Commission aims to change the rate of interest under the CCC, which is not the interest on loan of financial institutions, to adapt to the current economic situation, since Thailand has been adopting the current interest rate of seven and a half percent (7.5 %) per annum for more than ninety (90) years. As a result of the public hearing, the Commission has concluded the details of the Bill at the end of February 2021, details are provided in this newsletter.

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