BANGKOK (NNT) - The National Economic and Social Development Council (NESDC) has warned that rising household debt may slow the country’s economic recovery, as people use their income to repay debt rather than spend on consumption.

 

NESDC deputy secretary-general Jinanggoon Rojananan said the latest wave of COVID-19 infections has triggered not only a surge in household debt, but also a drop in income. The infections have also affected people’s ability to repay debts, leading to an increase in the amount they owe.

 

She suggested, in the short term, that the government speed up the implementation of debt restructuring programs for both new debtors, who are affected by the outbreak, and older debtors, who have undergone debt restructuring, but still risk becoming non-performing loans due to the latest wave of infections.

 

Ms. Jinanggoon said the government needs to emphasize provision of assistance to low-income earners, because their financial plight is much more serious than other groups, while aid measures are desperately needed for small and medium-sized enterprises, to enable them to retain employees.

 

-- © Copyright NNT 2021-07-06

 

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Loan forgiveness instead of debt restructuring for those soft loans already given might work. Just make them pay taxes af the end of the year on the amount forgiven.

Could we see some new action at the car auctions?

Just print hundreds of billions more and hand it out for nothing. Seems to work in other places.

OP: The infections have also affected people’s ability to repay debts, leading to an increase in the amount they owe.

 

That's the ticket! The infections are the culprit Nothing to do with closing businesses, blocking tourists from entry, locking down everything except the kitchen sink (for those folks that even have a kitchen and a sink within it), etc.

 

16 hours ago, snoop1130 said:

The National Economic and Social Development Council (NESDC) has warned that rising household debt may slow the country’s economic recovery, as people use their income to repay debt rather than spend on consumption.

The new normal.... never mind the bulging pockets of the elite rich will be spending more than normal.

19 hours ago, snoop1130 said:

has warned that rising household debt may slow the country’s economic recovery, as people use their income to repay debt rather than spend on consumption.

Obviously does not understand the pull of the latest mobile phone or pick-up model