COVID, Country Closure Raise Household Debts

[webfact]

 

BANGKOK, (TNA) – Past COVID-19 outbreaks and arrival restrictions caused Thai household debts to keep rising, according to the University of the Thai Chamber of Commerce.

The Center for Economic and Business Forecasting of UTCC found the growing household debts from its survey on 1,350 households sampled nationwide. Most samples earned more than 50,000 baht a month.

 

Thanavath Phonvichai, chief advisor to the center said the survey found that COVID-19 outbreaks and the consequent country closure raised household debts which were already higher than household income also due to the high cost of living. He said that 99.6% of the surveyed households were in debt.

 

Full story: https://tna.mcot.net/english-news-1005055

 

-- © Copyright Thai News Agency 2022-08-26

 

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[StayinThailand2much]

19 minutes ago, webfact said:

Most samples earned more than 50,000 baht a month.

The income situation seems to have improved recently.

[Cake Monster]

6 hours ago, webfact said:

The Center for Economic and Business Forecasting of UTCC found the growing household debts from its survey on 1,350 households sampled nationwide. Most samples earned more than 50,000 baht a month.

 

I dont know where and when the samples of this survey were taken, but a Household Income of 50,000 Baht per Month seems very high to me , and 99.6 % were in Debt at that Income..

Most of the Thai couples I know, have a combined Income of around 30-35 K per Month.

Household Debt has risen dramatically over the last 18 Months or so, to around 100 % of GDP, with a rise of 13 % in the previous Year alone.

This unsustainable rise in Household Debt, is mainly due to irresponsible lending from the Banks and other Financial Institutions, amid pressure from the Gov,t for them to lend in a very slack economy.

I know of 2 cases of low deposit ( 99 Baht ) and payback of, in one case 40 Years, and the other 45 Years on property selling now at about 2.1 Million Baht.( slightly different prices )

This is Money lent to people who are Factory Employees, earning a Basic Wage of around 12,000 Per Month, so even as a couple the Income wage is 24 K Basic.

The 40 Year payback is at 9k per Month, and the 45 Year Payback is at 5 K per Month.

IMO, the NPL rate, and Loans under Management and Special Mention are really going to increase rapidly over the next 12 - 24 Months.

The huge amount of Household Debt is one of the main reasons the BOT have not increased the Borrowing Rate to help curb Inflation.

In fact they dare not increase the rate, as they are fully aware that any increases at all will have a massive impact upon the Economy in the form of the NPL Etc

 

 

 

[JonnyF]

Not really surprising. 

 

Pretty much every policy of this Junta since 2014 has been designed to make the mega rich richer and the ordinary man poorer.

[hotchilli]

8 hours ago, webfact said:

The Center for Economic and Business Forecasting of UTCC found the growing household debts from its survey on 1,350 households sampled nationwide. Most samples earned more than 50,000 baht a month.

So they didn't reach the lower end then?

[hotchilli]

1 hour ago, Cake Monster said:

I dont know where and when the samples of this survey were taken, but a Household Income of 50,000 Baht per Month seems very high to me , and 99.6 % were in Debt at that Income..

Most of the Thai couples I know, have a combined Income of around 30-35 K per Month.

Household Debt has risen dramatically over the last 18 Months or so, to around 100 % of GDP, with a rise of 13 % in the previous Year alone.

This unsustainable rise in Household Debt, is mainly due to irresponsible lending from the Banks and other Financial Institutions, amid pressure from the Gov,t for them to lend in a very slack economy.

I know of 2 cases of low deposit ( 99 Baht ) and payback of, in one case 40 Years, and the other 45 Years on property selling now at about 2.1 Million Baht.( slightly different prices )

This is Money lent to people who are Factory Employees, earning a Basic Wage of around 12,000 Per Month, so even as a couple the Income wage is 24 K Basic.

The 40 Year payback is at 9k per Month, and the 45 Year Payback is at 5 K per Month.

IMO, the NPL rate, and Loans under Management and Special Mention are really going to increase rapidly over the next 12 - 24 Months.

The huge amount of Household Debt is one of the main reasons the BOT have not increased the Borrowing Rate to help curb Inflation.

In fact they dare not increase the rate, as they are fully aware that any increases at all will have a massive impact upon the Economy in the form of the NPL Etc

 

 

 

Very observant of you.. some truth at last.