12-2-2024 (BANGKOK) Thailand is poised to address its longstanding issue of high household debt with the establishment of an asset management firm slated for the first quarter of this year, announced Prime Minister Srettha Thavisin on Monday.
During a press briefing focused on debt management, Thavisin underscored the numerous challenges associated with household debt, notably the reluctance of certain creditors to engage in the resolution process.
As of September 2023, Thailand grapples with one of the highest household debt-to-GDP ratios in the region, standing at 90.9 per cent. Lower-income families, unable to secure bank loans, often resort to illegal loan sharks, plunging themselves into debt cycles characterized by exorbitant interest rates.
The forthcoming asset management firm, spearheaded by the Government Savings Bank, will primarily target persistent debts, Thavisin disclosed, refraining from divulging specific details regarding its operations.
According to another official, the new entity will adopt more lenient regulations in debt management.
Thavisin’s government, championing populist policies, has unveiled various measures to tackle the country’s staggering 16 trillion baht ($446 billion) household debt burden. These initiatives include interest rate reductions and debt suspension programs aimed at stabilizing the economy of Southeast Asia’s second-largest nation. The government’s broader economic agenda encompasses substantial stimulus packages and initiatives geared towards revitalizing the pivotal tourism sector.
