Bank of Thailand Seeks Ways to Reduce Household Debt

[snoop1130]

 

BANGKOK (NNT) - The Bank of Thailand (BoT) has discussed, with relevant authorities, ways to lower the country’s household debt, which includes borrowing from financial institutions and other loan sources, including those that are not under the BoT’s supervision.

 

BoT assistant governor Thanyanit Niyomkarn said, in the initial stage, the BoT intends to focus on government agency-related household debt, starting with co-operatives and student loans, with the aim of expanding to cover farmers’ loans next year.

 

She said the central bank plans to hold discussions with the teacher co-operatives, police co-operatives and the Student Loan Fund to identify debt solutions for borrowers. Moreover, the bank will help design the debt repayment structures of these organizations, in line with income, debt burden and other related factors of each borrower group.

 

Thanyanit said the BoT also aims to expand its cooperation with the Bank for Agriculture and Agricultural Cooperatives (BAAC) to reduce farmers’ debts, while implementing several debt relief and debt restructuring programs, to help retail and small and medium-sized enterprise (SME) borrowers who are suffering from the COVID-19 outbreak.

 

According to the BoT, Thailand’s household debt in the first quarter of this year increased to 14.1 trillion baht, or 90.5% of gross domestic product (GDP). Household debt was largely made up of commercial banks representing 43% of total debt, followed by specialized financial institutions at 29%, co-operatives at 15% and others at 13%.

 

-- © Copyright NNT 2021-07-23

 

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[Robin]

How to stop high personal debt? 

Teach Thais common sense:  Do not borrow more than you can afford o pay back

[248900_1469958220]

32 minutes ago, Robin said:

How to stop high personal debt? 

Teach Thais common sense:  Do not borrow more than you can afford o pay back

You must be new here.

[cjinchiangrai]

Well, you could stop issuing credit cards and reduce card limits. That would help a lot.

[Mavideol]

1 hour ago, Robin said:

How to stop high personal debt? 

Teach Thais common sense:  Do not borrow more than you can afford o pay back

you are asking for the Impossible.....The old saying goes, “you cannot teach an old dog new tricks.”   555

[darksidedog]

My take on lending money here comes down to me asking myself one question.

Once I know what the money is needed for, I ask myself if I would be willing to put my hand in my pocket to pay for said assistance outright, without it being a loan.

I have given several families money I see they are desperate for, but could never realistically pay back if I "loaned" it to them.

Better to give to a worthy cause and feel good about yourself, than loan money you will just get stressed over never seeing again.

I have lent money to those where I thought they could afford to actually pay, especially if they are trying to create an income.

Expecting to lose everything on those loans, they have with one exception, been repaid. And that one I saw coming, but it was worth it.

Thai people are on the whole, a lot more honest at repaying than many given them credit for. (No pun intended!)

Lending to the destitute on the other hand is not a wise plan, and many with debt are in that bracket right now, a fact the banks are starting to understand and worry about.

[oznomad]

Start with some knowledge and a good foundation.

I don't read Thai, which this book is in, but by all accounts it gives people very helpful info on how to start getting ahead.

www.secretsofsaving.com

 

[Cake Monster]

13 hours ago, darksidedog said:

My take on lending money here comes down to me asking myself one question.

Once I know what the money is needed for, I ask myself if I would be willing to put my hand in my pocket to pay for said assistance outright, without it being a loan.

I have given several families money I see they are desperate for, but could never realistically pay back if I "loaned" it to them.

Better to give to a worthy cause and feel good about yourself, than loan money you will just get stressed over never seeing again.

I have lent money to those where I thought they could afford to actually pay, especially if they are trying to create an income.

Expecting to lose everything on those loans, they have with one exception, been repaid. And that one I saw coming, but it was worth it.

Thai people are on the whole, a lot more honest at repaying than many given them credit for. (No pun intended!)

Lending to the destitute on the other hand is not a wise plan, and many with debt are in that bracket right now, a fact the banks are starting to understand and worry about.

If poor people have to borrow Money, it is usually because they are not prudent enough to manage the Money stream they already have,

Either that, or that they are just plain wasters and spend thrifts

And if rich people need to borrow Money it is usually that they want to use other people Money instead of their own

Thats why they are rich.

If the cause it worthy, then openly, and freely gift the Money, but never Loan it expecting the Loan to be repaid.

[hotchilli]

15 hours ago, snoop1130 said:

The Bank of Thailand (BoT) has discussed, with relevant authorities, ways to lower the country’s household debt, which includes borrowing from financial institutions and other loan sources, including those that are not under the BoT’s supervision.

Increase employment is the only way... trouble is since Prayut & Co have been in power it's decreasing with no sign of slowing down.