9 minutes ago, Enzian said:

Indeed how can the government address the issue without generating moral hazard and eventually leading to more debt? Are there any examples of bailouts (other than a few genuine examples of force majeure) that actually made things better over time? It would seem that better underwriting is the only sensible approach. And why is underwriting by Thai lenders apparently so bad?

Is there any underwriting done here, other than getting a co-signer?   Are there even credit scores for people?.

Edited March 6, 20233 yr by ThailandRyan

The household debt issue is too big for any political party to ignore. The high debt and low serviceability are threats to the economic and financial stability and may even spilled into political instability. Lifting wage is only portion of the solutions needed. Legislations on lender responsibility and retailer interest rates have to be reviewed. This issue should be a bipartisan effort and is a long term process. Unfortunately Thailand does not have this luxury due to the elite establishment and the military hijacking the democratic process and shoving their own agenda to the people. Make them poor, uneducated and submissive. 

 

15 minutes ago, ThailandRyan said:

Is there any underwriting done here, other than getting a co-signer?   Are there even credit scores for people?.

https://thethaiger.com/finance/loans/guides/how-to-check-your-credit-score/

16 minutes ago, Eric Loh said:

https://thethaiger.com/finance/loans/guides/how-to-check-your-credit-score/

For the rest of the world yes, never seen a website or credit score company fir Thailand. My use of credit here is done on my US cards, and shows up but not the use of my Thai CC or the prior car loan I had for my Triton. Nothing listed anywhere. My ex-wife no credit history showing for Thailand but in the US yes.

 

Here is something to read.

 

https://www.nationthailand.com/thailand/politics/40023659

The former finance minister said new loan criteria are needed because millions of Thais had been blacklisted by the bureau for being unable to make debt repayments amid the pandemic and cost-of-living crisis.

Although financial institutions claimed the blacklist was not a major factor in their loan decisions, in reality almost all blacklisted debtors were unable to borrow from legal lenders, he added.

Edited March 6, 20233 yr by ThailandRyan

3 hours ago, proton said:

He has become a monk the others up country. 

Truly the country of no consequences.

1 hour ago, Enzian said:

Indeed how can the government address the issue without generating moral hazard and eventually leading to more debt?

More importantly, how can they address it without making people feel bad?

I pay you tomollow..????

1 hour ago, Eric Loh said:

The household debt issue is too big for any political party to ignore. The high debt and low serviceability are threats to the economic and financial stability and may even spilled into political instability. Lifting wage is only portion of the solutions needed. Legislations on lender responsibility and retailer interest rates have to be reviewed. This issue should be a bipartisan effort and is a long term process. Unfortunately Thailand does not have this luxury due to the elite establishment and the military hijacking the democratic process and shoving their own agenda to the people. Make them poor, uneducated and submissive. 

 

This is when having an Oligarch-based economy and leaders who barely know military matters, much less economic matters, comes home to roost.

 

I remind myself that during the Covid Emergency period, there were both debt moratoriums and banks were allowed to book imputed interest on loans, and then run these fantastical payments through their income statements. Not only does that give a false impression of profits, but since the profits were fictional, leverage actually increased over what the balance sheet says. Oh, and NPLs are likely a lot higher than reported.

 

I don't have a solution (other than opening the economy wider in spite of Oligarch/Tycoon pressure), but I know I have lots of company in being without a viable solution other than "hope".

1 hour ago, Walker88 said:

This is when having an Oligarch-based economy and leaders who barely know military matters, much less economic matters, comes home to roost.

 

I remind myself that during the Covid Emergency period, there were both debt moratoriums and banks were allowed to book imputed interest on loans, and then run these fantastical payments through their income statements. Not only does that give a false impression of profits, but since the profits were fictional, leverage actually increased over what the balance sheet says. Oh, and NPLs are likely a lot higher than reported.

 

I don't have a solution (other than opening the economy wider in spite of Oligarch/Tycoon pressure), but I know I have lots of company in being without a viable solution other than "hope".

I am sure that the one member of this forum who is an economic genius, in his own OP on the Baht, will be along shortly to clarify this point and indicate that there is no way the BOT would ever allow this to occur. The economy according to the PM is recovering well, and with tourism building money will be flowing into the country and aiding in the recovery.  As many of us have said over and over whenever an article appears with information which shows the recovery will be xx% by the 3rd or 4th quarter and a full recovery, much like Thai Airways is spouting, is not close in anyway shape or form.  This is how, in my view things are being manipulated to the benefit of the Cabinet members, certain government officials and those in the know.  I am sure there is quite a bit more that Chuvit will be letting flow as he rolls out all of the corruption he knows about.

10 hours ago, zzaa09 said:

Yet, what do any such government policies have to do with resolving personal/household debt.

Seems to me it all comes back to the responsibility of the individual[s].

Yes it does come down to the individual, but bear in mind the average Thai had a very low level of smarts, courtesy of inept government policies since the year dot and no chance planned for anytime soon. 

 

10 hours ago, zzaa09 said:

Yet, what do any such government policies have to do with resolving personal/household debt.

Seems to me it all comes back to the responsibility of the individual[s].

They have none.

7 hours ago, bangon04 said:

“Pheu Thai has policies to fight poverty...."    I read this in another thread. So there is absolutely no need to worry. 

Every need.