High Thai household debt a major problem for economy - central bank chief

 

FILE PHOTO: ThailandÕs Central Bank Governor Veerathai Santiprabhob poses during an interview with Reuters at the Bank of Thailand headquarters in Bangkok, Thailand, April 1, 2019. REUTERS/Athit Perawongmetha

 

BANGKOK (Reuters) - Thailand's high household debt remains a major problem for its economy, the central bank governor said on Tuesday.

 

Banks should focus on borrowers' debt servicing, rather than collateral, Veerathai Santiprabhob told reporters after signing a memorandum of understanding with banks on a "debt clinic" programme aimed at tackling household debt problems.

 

Comparing to countries with similar incomes, Thailand's debt-to-gross domestic product ratio is the highest, he said.

 

The level was 78.6 percent at the end of 2018, central bank data showed.

 

High debt has been a factor thwarting interest rate cuts. The central bank is expected to hold the key rate unchanged on Wednesday.

 

-- © Copyright Reuters 2019-05-07

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I know! Bundle the non-performing loans into packages and sell them forward! Worked like a charm in the US .. 

45 minutes ago, snoop1130 said:

Thailand's high household debt remains a major problem for its economy

Just look around you and watch the absurd consuming mania, there's doubt this has gone far beyond what is sustainable.

No wonder when 25 square metre shoebox can cost 6 million nowadays.

 

And car cost 50-300% more than the same model in the west.

 

And 90% of all house appliances are Chinese <deleted> that will break in a year.

whats the forecast?

 

timeframe?

 

 

You only need to go on the road and see every somchai driving a huge pick up and know they are debt up to their armpits.

1 hour ago, snoop1130 said:

Veerathai Santiprabhob told reporters after signing a memorandum of understanding with banks on a "debt clinic" programme aimed at tackling household debt problems.

And if that don't work there's always Can't pay ? We'll take it away .. That'd be top TV watching incandescent Somchai's Vigo's getting hauled off the mud drive onto the back of a repo' truck before disappearing down the road to the off limits compound .. 

Edited May 7, 20197 yr by Justgrazing
Sp

Not surprising considering wage rates and the enormous wealth disparity between the very few ultra rich and the many poor.

31 minutes ago, edgarfriendly said:

whats the forecast?

 

timeframe?

 

 

Forecast;       Serious continued flooding in the spending department

             ;       Serious drought in the repayment department.

 

Timeframe:    Forever!

 

 

41 minutes ago, RotBenz8888 said:

Just look around you and watch the absurd consuming mania, there's doubt this has gone far beyond what is sustainable.

We had to learn our lesson the hard way, now it's their turn. ????

42 minutes ago, AtoZ said:

No wonder when 25 square metre shoebox can cost 6 million nowadays.

 

And car cost 50-300% more than the same model in the west.

 

And 90% of all house appliances are Chinese <deleted> that will break in a year.

Show me a Chinese product that actually lasts a year. 

1 minute ago, djayz said:

Show me a Chinese product that actually lasts a year. 

That doesn't bode well for the much needed Chinese submarines we have waited so long for.

9 minutes ago, djayz said:

Show me a Chinese product that actually lasts a year. 

One that's kept in the cupboard and not used!

Loan Sharks mercilessly mopping up peoples lives.

2 hours ago, snoop1130 said:

Thailand's high household debt remains a major problem for its economy,

Household debt is not a problem for the unbelievably filthy rich 1% of the population who own 67% of the country's wealth. It is the other 99% who seem to have this problem they speak about. 

2 minutes ago, Father Fintan Stack said:

Don't tempt fate, I was hoping that when I get made a Thai citiizen in four years' time I would have the honour and privilege of visiting the rusty barnacle magnets rotting alongside the HTMS Chakri Naruebet in Sattahip.

 

Don't spoil this old man's dream.

Somebody in Spain where it was built apparently had had dealings with the Thais when they painted this little nugget on the boat:

 

 

Maibpenrai ????????????????

 

 

 

1 hour ago, AtoZ said:

And car cost 50-300% more than the same model in the west.

 

Even lay-z-boy recliners cost double in Thailand compared to the West, and they are made here!

32 minutes ago, Father Fintan Stack said:

Don't tempt fate, I was hoping that when I get made a Thai citiizen in four years' time I would have the honour and privilege of visiting the rusty barnacle magnets rotting alongside the HTMS Chakri Naruebet in Sattahip.

 

Don't spoil this old man's dream.

Don't panic, it's open every Children's Day.

How many people you see/know where they work and can guess what their salary is, yet blinged up with two baht gold riding a 300k motorbike, either thieves or in debt

Consumption has gone crazy . It’s the monthly payment, not the full price , the interest rate or the ability to service debt. Which is way beyond average Thai ability to grasp. Goaded by ads and keep up with the ...err.....ChinnaLookaWhatMeHave (Jones).

its a worldwide problem as greedy lenders just lend and Boy! Have we got a Big Dump coming! 

Cash Will Be King!

And when the bubble or explosion bursts be prepared ! If farang think Thais are not so friendly now.. . May have a weak baht but will that compensate for the massive change in behaviour of the population !


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Banks are largely responsible for extending too much credit to Thai workers. They have a credit bureau too so really no good excuse. Personal bankruptcy is not an option for most Thais so banks take the debtors to court and then attach their pay if no repayment plan can be worked out.

Not just Thai citizens, world wide!

 

Are these so called politicians bankers etc... intouch will the real world?! They put the masses in this mess with their own greed and self importance...

 

It does not take a banker to point out the fact that individuals are in debt.

Of course.

Some off topic posts have been removed. 

Its a national crisis but no one will do anything.  There is too much money to be made from Debt, particularly those with fingers in the bank pie.

15 hours ago, RotBenz8888 said:

Just look around you and watch the absurd consuming mania, there's doubt this has gone far beyond what is sustainable.

Yes sure you need som income to spend and borrow. I think EFFEKTIVE working time avarage is roughly 1 hour 15 min/day, than including the amont of hollydays / year (as the only country in the world) than the outcome will only go one way.......!!?? Than the deep sikness of PROUDNESS AND JEALOUSNESS the root cause of this problem..

Edited May 8, 20197 yr by Chrisswe

16 hours ago, snoop1130 said:

Thailand's high household debt remains a major problem for its economy, the central bank governor said on Tuesday.

Coming from a bank governor that's a rich statement to make... they charge for every single service including an annual charge for your debit card, in my home country cards are free.. that must add up to millions for them.

Then they make a pile on your invested savings & charge you interest on your debt, almost encouraging you to borrow more.

 

 

15 hours ago, AtoZ said:

No wonder when 25 square metre shoebox can cost 6 million nowadays.

 

And car cost 50-300% more than the same model in the west.

 

And 90% of all house appliances are Chinese <deleted> that will break in a year.

 

I was speaking to a Chinese colleague quite recently and, ever the diplomat, I asked him why Chinese goods were such crap. He was surprised, and said that back home he had experienced no such low quality and breakages as I described. Which means either he was lying, or that they export their cheap crap to countries like Thailand where price means everything and quality means nothing, and keep the decent stuff for themselves and/or export their quality goods to countries that are willing to pay for that quality.

15 hours ago, djayz said:

Show me a Chinese product that actually lasts a year. 

Apple ?