19-12-2023 (BANGKOK) In a bid to address the growing debt crisis, Thailand’s cabinet has given the green light to a debt suspension initiative for smaller businesses and extended support to retail debtors, announced Prime Minister Srettha Thavisin on Tuesday. This move is part of the government’s comprehensive plan aimed at alleviating the burden on the 10.3 million people grappling with debt, which has become a significant impediment to Southeast Asia’s second-largest economy. Household debt in Thailand reached 90.7% of gross domestic product by the end of the second quarter.
As part of the program, the government aims to maintain diesel prices at approximately 30 baht ($0.86) per litre and electricity bills at a maximum of 4.2 baht per unit. Prime Minister Srettha Thavisin, addressing reporters, outlined these measures to help mitigate the impact of soaring energy costs on the populace.
The diesel price cap will be in effect for three months and will be supported by tax measures and the national oil fund, as revealed by Energy Minister Pirapan Salirathavibhaga. Additionally, the new electricity billing rates will be determined in January, with a commitment to offering vulnerable groups the existing rate of 3.99 baht per unit.
Prime Minister Thavisin emphasized the government’s commitment to providing relief to those struggling with debt and reducing the financial strain on businesses. These measures are expected to inject much-needed support into the economy, which has been grappling with the fallout of rising debt levels.
Notably, government subsidies have played a pivotal role in maintaining low inflation, with the headline inflation rate reported at -0.44% in November, marking the lowest level in almost three years. As Thailand navigates the economic challenges posed by mounting debt, the government’s multi-faceted approach aims to address various aspects contributing to the financial strain on individuals and businesses alike.
