Jump to content

Household debts of Thais alarm economists


snoop1130

Recommended Posts

Household debts of Thais alarm economists

By The Nation

 

800_2ff31c34c138421.jpg

 

The ratio of household debt to GDP has risen by 78.8 per cent meaning that Thai citizens have combined debts of Bt13 trillion debts, the second-highest in Asia, according to a recent seminar on the subject of household debt and homeownership organized by the Real Estate Information Centre of Government Housing Bank (GHB).

 

A massive 21 million are now in debt, with people under the age of 30 considered the most fragile group. Because of the money they owe, these millennials have less buying power and that is having a knock-on effect on the government's first-time house buyer project.

 

The seminar made the point that adolescents and new graduates are finding themselves in debt much too early in their lives. 

 

A senior adviser to the National Economic and Social Development Council, Jinanggoon Rojananan said that even though household debt in the second quarter of 2019 dropped by 5.8 per cent from the first quarter, the situation is still risky.

 

More than 50 per cent of debts are long-time real estate loans and another 30 per cent are made up of personal debts, credit card debts, and car loan debts. These are considered high risk because they are repayable in the short term and can easily turn into bad debts, which will affect requests for loans by first-time house buyers.

 

People aged between 26-30 years old are most likely to get into debt as a result of unmanageable home loans.

 

Sakkapop Panyanukul, a senior executive with the Bank of Thailand (BOT)'s Financial Stability Unit, noted that most Thais overspent and saved 15 per cent less money over the past five years resulting in less buying power while the director of the Finance Ministry’s Macroeconomic Analysis Division Pisit Puapan said he believed that the Thai economy would continue to slow as a result of lower investment. 

 

Consumers were encouraged to make financial plans and evaluate their needs before entering into more debt in the slowing economy.

 

Source: https://www.nationthailand.com/business/30377647

 

logo2.jpg

-- © Copyright The Nation Thailand 2019-10-22
Link to comment
Share on other sites

3 minutes ago, snoop1130 said:

Household debts of Thais alarm economists

Household debt doesn't seem to worry fat cat politicians who are trying desperately to pump prime the flagging economy with stimulus packages which include easy access government bank loans to workers, farmers and small business.

The message is clear.......borrow, borrow, borrow........spend, spend, spend! 

Link to comment
Share on other sites

1 hour ago, snoop1130 said:

More than 50 per cent of debts are long-time real estate loans and another 30 per cent are made up of personal debts, credit card debts, and car loan debts.

Don't forget to set aside another 3000thb for your GPS!

Link to comment
Share on other sites

38 minutes ago, PatOngo said:

But my new iPhone 11 is SOOOO cool!

I've got two IPhones 11 from my son, I'd sell for a special price.

 

   Even when most Windows programs don't work with them, you've got a rotten apple on it. Go for it. Only Iphone holders are cool. 

Link to comment
Share on other sites

52 minutes ago, PatOngo said:

Don't forget to set aside another 3000thb for your GPS!

  Promotion for only 4,999 baht. Iphones are cool, man.

 

Sell selling them with a <deleted>_y battery that's part of the phone, then claim that the customers need to buy a newer version of these phones. 

 

  And tell everybody that these phones are so special.

I love Iphones to death because they never work with any other app other than crappy ones from APPLE.

Link to comment
Share on other sites

2 hours ago, snoop1130 said:

Household debts of Thais alarm economists

 

1 hour ago, marko kok prong said:

Reckon i may buy a heap of some of this debt,then if i see movement i will go short,did the same 2008/9 gotta tell i done okay know the market though boys can lose it all if you <deleted> up.

How many households do you reckon you'll buy?

Link to comment
Share on other sites

Maybe it would be prudent of the banks or private lenders to actually check on the buyers ability to repay what they will owe beforehand, which might save the poor consumer from getting into a situation that is drowning them. Not that I for a moment think that banks or private lenders have a heart, but bad debts are bad business for them too.

Link to comment
Share on other sites

1 hour ago, nickstav said:

Maybe it would be prudent of the banks or private lenders to actually check on the buyers ability to repay what they will owe beforehand, which might save the poor consumer from getting into a situation that is drowning them. Not that I for a moment think that banks or private lenders have a heart, but bad debts are bad business for them too.

2008 teached us that there is no such thing as bad debt. They get repackaged together as safe "investment" for those who have savings. 

Link to comment
Share on other sites

3 hours ago, PatOngo said:

But my new iPhone 11 is SOOOO cool!

Was at a my local central last Saturday. Seemed as if every man and his dog was queuing outside a phone shop or carrying a small bag which was a symbol they’d just bought one. 

Link to comment
Share on other sites

32 minutes ago, kevin612 said:

What happen if the Thai economy collapsed again? The last time was in 1997, it’s been a long time.

Worldwide basically.. It looks very ugly, knowing of protests globally today, I would not say a civil world war is impossible. 
I guess they are trying to buy time and find a magical solution in every country, else it collapsed already.

What concerns me more, if that happens, I do not expect Thais or gov. to be nicer for us hehe. Might not be that safe here.

Link to comment
Share on other sites

2 hours ago, rkidlad said:

Was at a my local central last Saturday. Seemed as if every man and his dog was queuing outside a phone shop or carrying a small bag which was a symbol they’d just bought one. 

Did they get the matching white pointy hat with a  big "D"  on also?

Link to comment
Share on other sites

5 hours ago, marko kok prong said:

Reckon i may buy a heap of some of this debt,then if i see movement i will go short,did the same 2008/9 gotta tell i done okay know the market though boys can lose it all if you <deleted> up.

And where would you buy such instruments that would let you make a covered short? Interesting idea.

Link to comment
Share on other sites

7 hours ago, kevin612 said:

What happen if the Thai economy collapsed again? The last time was in 1997, it’s been a long time.

All the Thai-Chinese families who, on average, are far more financially responsible, will have a next round of buying up distressed property and businesses.

 

It's one of the reasons they own almost everything now.

 

And, the wealth gap will continue to deepen.

Link to comment
Share on other sites

12 hours ago, Matzzon said:

And the bubble grow bigger and bigger and bigger.........pooooof!

 

 

A bubble ready to explode;

it is the Thai banks that hold almost 100% of these debts;

But it's their fault;

to accept that a civil servant who earns 15,000 baht a month can put credits on his back up to sometimes 80% of his salary is suicidal; not only for the consumer but especially for the bank.
If the consumer can no longer repay, for whatever reason, it is the banks that will end up with these more than doubtful debts.

If they are not strong enough they will collapse like a castle of cards;

1997 bis repetitae worse, a thousand times worse.

Link to comment
Share on other sites

16 minutes ago, Assurancetourix said:

 

 

A bubble ready to explode;

it is the Thai banks that hold almost 100% of these debts;

But it's their fault;

to accept that a civil servant who earns 15,000 baht a month can put credits on his back up to sometimes 80% of his salary is suicidal; not only for the consumer but especially for the bank.
If the consumer can no longer repay, for whatever reason, it is the banks that will end up with these more than doubtful debts.

If they are not strong enough they will collapse like a castle of cards;

1997 bis repetitae worse, a thousand times worse.

but think of the assets they can seize, most Thais have some paddy back 'home' in the villages

Link to comment
Share on other sites

Archived

This topic is now archived and is closed to further replies.

  • Recently Browsing   0 members

    • No registered users viewing this page.




×
×
  • Create New...