Thai govt asks central bank to review rates for credit cards, personal loans

[snoop1130]

FILE PHOTO: Thailand's central bank is seen at the Bank of Thailand in Bangkok, Thailand April 26, 2016. REUTERS/Jorge Silva

 

BANGKOK (Reuters) - Thailand's government has asked the central bank to review interest rates for credit cards and personal loans to try to tackle high household debt, its prime minister said on Tuesday, sending bank shares falling.

 

Prayuth Chan-ocha said a range of measures prepared for solving debt problems include reducing peoples' interest rate burden, debt repayment adjustments and promoting competition for lower interest rates.

 

The central bank has been asked to review the ceiling of interest rates and supervise credit cards, personal loans and auto title loans, he said.

 

"If our people still have a lot of debt and at a young age, it will affect their whole lives," Prayuth told a briefing after a cabinet meeting.

 

Thailand's household debt stood at 14 trillion baht ($449.87 billion) at the end of December, equal to 89.3% of gross domestic product (GDP), among the highest in Asia.

 

The move sent bank shares falling 1.2% in early afternoon trade, with Kasikornbank down 2.3% and Siam Commercial Bank slipping 1.9%. Analysts said lower rates will hurt banks' earnings.

 

Last year, the central bank reduced the interest rate ceiling for credit cards to 16% per year from 18% and that of personal loans to 24% to 25% from 28%, to help debtors cope with the impact of coronavirus outbreaks.

 

-- © Copyright Reuters 2021-06-15

 

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[ikke1959]

Teach people how to handle what they earn and not buy and go on holiday if you don't have the money for it. Besides there is a lot more to do to help the people. The government is already years filling its pockets instead of raising salaries and education. And stop with the 2 weeks lottery scheme. People don't understand there is almost no change to win anything even with 2 digits and 1 change per drawing

[Justgrazing]

1 hour ago, snoop1130 said:

 

Prayuth Chan-ocha said a range of measures prepared for solving debt problems include reducing peoples' interest rate burden, debt repayment adjustments and promoting competition for lower interest rates.

 

He does like to have a micro management fiddle with things does he not .. 

But preach as much as they will a lot of Thai's who won't qualify for CC's or bank loans will resort to the local money lenders who will stitch them right up .. 

[worgeordie]

Everything today is been done to help people that are in Debt, not just

in this country but the West too.

People who try and save a little ,who are canny with their money, dont

spend more than they earn, are at a disadvantage ,due to low interest

rates been offered on bank deposits , and rising inflation ,which is just

eating away at their savings . 

 

regards worgeordie

[holy cow cm]

2 hours ago, snoop1130 said:

Thailand's household debt stood at 14 trillion baht ($449.87 billion) at the end of December, equal to 89.3% of gross domestic product (GDP), among the highest in Asia.

 

And Big Cheezy quickly realizing and not one to let a group of Thai commoners beneath him out do his running the country into the ground debt standards, has now pulled all the stoppers out to use yet another next executive loan decree in order to quickly surpass that household debt thus awarding them a first place title ranking all in the special interests of the administration he commands in the all not so sea worthy sinking land boat..

 

And this concludes yet another chapter in the ongoing Thailight zone.

 

Edited June 15, 2021 by holy cow cm

[BestB]

Dropping the interest rates now will not be helping people without a job or an income . But sure will make it better for wealthy ones to buy more .

[Boomer6969]

Isn't this putting the cart in front of the oxes. Just ask the central bank to lower interest rates, increase in money supply will have all sorts of other beneficial effects as well.

 

But by now we should all know that these army clowns have only a very vague idea of what they are doing.

[Chelseafan]

9 hours ago, worgeordie said:

Everything today is been done to help people that are in Debt, not just

in this country but the West too.

People who try and save a little ,who are canny with their money, dont

spend more than they earn, are at a disadvantage ,due to low interest

rates been offered on bank deposits , and rising inflation ,which is just

eating away at their savings . 

 

regards worgeordie

 

Not me, I've put everything into Betamax....its the future....

 

[Chelseafan]

8 hours ago, Boomer6969 said:

Isn't this putting the cart in front of the oxes. Just ask the central bank to lower interest rates, increase in money supply will have all sorts of other beneficial effects as well.

 

But by now we should all know that these army clowns have only a very vague idea of what they are doing.

 

 

Basic rule of economics. Never let Government interfere with banking. It always ends in tears...

 

[RichardColeman]

10 hours ago, snoop1130 said:

"If our people still have a lot of debt and at a young age, it will affect their whole lives," Prayuth told a briefing after a cabinet meeting.

Maybe they could join the army, become a general and increase their wealth ?Just a suggestion

[Isaan sailor]

Lower interest rates: win/win/win.  Consumers get a break in debt burdens, overpriced Baht goes down, exports rise.

Edited June 16, 2021 by Isaan sailor

[bangon04]

14 hours ago, Chelseafan said:

 

Not me, I've put everything into Betamax....its the future....

 

surely you have heard about LaserDiscs already??

[Chelseafan]

6 hours ago, bangon04 said:

surely you have heard about LaserDiscs already??

 

Goddamnit!! I'll look into it....

[rickudon]

Quote

Last year, the central bank reduced the interest rate ceiling for credit cards to 16% per year from 18% and that of personal loans to 24% to 25% from 28%, to help debtors cope with the impact of coronavirus outbreaks.

 

A personal loan rate of 24% is still extortionate. My personal loan from UK is 3%........