Commercial Collateral: A Boost for the Thai Economy

In the near future, businesses in Thailand may be endowed with a new tool which could help enhance their access to financial resources—arguably one of the most important resources to survive and thrive in today’s highly competitive environment. This tool is “commercial collateral,” a new form of security/security interest not previously available under Thai laws. The draft Commercial Collateral Act proposed by the Fiscal Policy Office, Ministry of Finance, was approved by the Cabinet on July 9, 2009. The draft Commercial Collateral Act, when adopted, will effectively expand the types of security available and can be used to secure debts/financial obligations in Thailand.