Thai Central Bank instructed to review interest rate caps on personal loans

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Prime Minister Prayut Chan-o-cha has instructed the Bank of Thailand (BoT) to review the caps on interest rates charged for personal loans, which include credit cards, ready cash cards, vehicle leases, micro-finance and nano-finance.

 

The prime minister said yesterday (Tuesday) after the weekly cabinet meeting he wants the central bank to find ways to ease the debt burden of teachers and students, who took student loans in the wake of the third wave of COVID-19 pandemic, which has had widespread impacts on the public, who are suffering from lost revenues and increased household debt, which has risen to 89.3% of GDP.

 

The prime minister expects the state agencies to come up with short-term remedial measures in the next six months.

 

Full Story: https://www.thaipbsworld.com/thai-central-bank-instructed-to-review-interest-rate-caps-on-personal-loans/

 

-- © Copyright Thai PBS 2021-06-16

 

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[itsari]

How do you review a contract between the bank and the lender ? Review contract law and ruin any confidence left in business in Thailand? 

[Purdey]

Writing off debt may be one hackneyed route considered but will not help if people think the government will save them every time they owe money. The government will also not want loan sharks to step in so microfinance may be a better method. You can't end debt until people have decent wages and healthcare.