Government to roll out new measures to tackle Thai indebtedness

[webfact]

 

The Thai government is expected to announce new measures today to solve the debt problems of Thai people, after it was revealed that, by the end of last year, household debt had soared by 3.7% year-on-year to 13.7 trillion baht, including 1.05 trillion baht in non-performing loans (NPLs).

 

Prime Minister Srettha Thavisin, who is also finance minister, Interior Minister Anutin Charnvirakul and the national police chief, Pol Gen Torsak Sukvimol, are expected to hold a press conference today on the new measures to solve indebtedness, among which are those who are still being affected by the impacts of the COVID pandemic, people without fixed incomes, leasing debtors, student loan debtors and those who have NPLs with state-run financial institutions.

 

Of this staggering 13.7 trillion baht of debt, loans on which payments are overdue for more than 90 days (NPLs), involving about three million debtors, amount to 1.05 trillion baht, representing an increase of 7.7%, while loan payments which are overdue for 31-90 days amount to 610 billion baht, up 17.8% from a year earlier.

 

Surapol Opasatien, president and CEO of National Credit Bureau, says they are most concerned about debt from car leasing, amounting to 230 billion baht, representing an increase of 28% compared to a year earlier, adding that NPLs from car leasing are increasing quickly, as reflected in the increased repossessions of cars.

 

Full story: Thai PBS 2024-02-12

 

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[flyingtlger]

I owe, I owe, I owe, so off to work I go...

 

[bkk6060]

It's terrible.   Maybe cut back on all the holidays and idiotic ideas like "a month of Songkran". And, fighting 400 b minimum wage? It is really a time bomb at some point a recession or other financial issue will occur.

[transam]

Try having a word with bank and loan company staff that arrange loans......

[quake]

Wot, no new pick up this year.

Somchai won't like that idea. 

 

[John Drake]

Only one way to solve and the government isn't going to like it: cancel all debts.

[hotchilli]

3 hours ago, webfact said:

The Thai government is expected to announce new measures today to solve the debt problems of Thai people

Livable wages ?

[worgeordie]

Government is always trying to help people in debt ,forgive debts,free money,

guaranteed prices for farmers , teachers ,civil servants are upto their eyes in debt,

because it's so easy to get loans , now what about the people who have been cany

with their money and saved up a few bob for their retirement  ,they get low interest

rates which don't cover the real rate of inflation, so the value of their savings is

just melting away ,talk of lowering the rate , to help those in debt ,maybe better

to be in debt ?

 

regards worgeordie

 

[bokningar]

Increase productivity so there is more money to spend. Just hand out money without doing that is a recipe for inflation.

Start with a working education-system so that it will educate efficient high producing people.

 

[bradiston]

The article only manages to account for about 10% of the 13.7 trillion THB owed. Does it include informal debt, ie to loan sharks etc? Who are the other creditors? Banks? Are they being audited? They must be carrying vast amounts of debt. Mortgages? Unsecured loans? Or secured on a chanote? Srettha might be right, but who's going to blow the whistle and open their books?

[trainman34014]

Stop the Banks and Lending Institutions from recklessly dishing out Loans to people who don't have a hope of paying anything back ! You can be as poor as a Church Mouse here but if Aunt Fanny out in the Jungle has Papers for her House or Land then you will get enough to get whatever you want and she cops the Flak when it all goes wrong !

[kingstonkid]

4 hours ago, John Drake said:

Only one way to solve and the government isn't going to like it: cancel all debts.

LOL you have to be kidding RIGHT. 

 

Cancelling loans is the worst thing.  All Thais will do is turn around and get deeper in debt and hope that the next government will bail them out.

 

THAIS, like most people, needs to be educated about money, Good Debt, and bad Debt.  They need to learn to live within their means.

 

Even raising the minimum wage will not solve it. They will just blow the extra money.

 

It's the same thing if they buy out the loan sharks. The people will still go to them for funds.

 

Nothing the government does or will do is going to help except maybe changing the rules on student debt, but even that is a crap shoot.

 

Car and house leases and sales should be regulated and if a person does not have the money t hen don't sellt hem the Benz

 

 

[ozz1]

Perhaps let people spend their 10 thousand baht gift go towards paying of their debts but that won't happen spend spend thai logic

[kingstonkid]

13 minutes ago, ozz1 said:

Perhaps let people spend their 10 thousand baht gift go towards paying of their debts but that won't happen spend spend thai logic

The funny thing is that the government has mandated that you can not use it for debt.  only things you buy at TOPS or 711

[The Old Bull]

Thais need to be educated about the virtues of saving for something untill they have enough to buy it. Immediate gratification is the problem. I was raised to believe "you cut your coat according to your cloth." 

[mikebell]

'Annual income twenty pounds, annual expenditure nineteen, nineteen and six, result happiness.  Annual income twenty pounds, annual expenditure twenty pounds ought and six, result misery.' 

Teach Dickens in schools.

[Captor]

2 hours ago, mikebell said:

'Annual income twenty pounds, annual expenditure nineteen, nineteen and six, result happiness.  Annual income twenty pounds, annual expenditure twenty pounds ought and six, result misery.' 

Teach Dickens in schools.

But first the teachers need to learn it themselves.

[Purdey]

Can't pay off debts, as mentioned above, because it frees the debtors to borrow more in the expectation the government will pay it off for them. 

High school is the place to teach kids how to handle money but even the teachers are unqualified to teach this subject.