Thai govt to set up asset management firm to tackle household debt

[snoop1130]

 

Thailand Prime Minister Srettha Thavisin today announced that an asset management firm is to be established by the Thai government in the first quarter of the year to address the persistent issue of high household debt. The initiative confronts numerous challenges, including the reluctance of some creditors to participate in the process.

 

With 90.9% of its GDP equalling household debt at the end of the fiscal year on September 30, 2023, Thailand boasts one of the highest such ratios in the region. Lower-income families, unable to secure bank loans, frequently resort to illegal loan sharks, resulting in a debt trap with steep interest rates for many.

 

The Government Savings Bank will establish an asset management firm, which will primarily tackle chronic debts, according to the Thai prime minister. The Bangkok-born politician did not provide further information. Another official noted that the new entity will implement more lenient regulations in debt management.

 

The government has previously introduced measures such as interest rate reductions and debt suspensions to manage the country’s household debt, valued at 16 trillion baht (US$446 billion), reported Bangkok Post.

 

By Alex Morgan

Caption: Photo courtesy of iStock

 

Full story: The Thaiger 2024-02-12

 

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[flyingtlger]

8 hours ago, snoop1130 said:

to address the persistent issue of high household debt.

The government should instead have programs that teach people how to manage and budget their money BEFORE people get into CC debt....

[hotchilli]

11 hours ago, snoop1130 said:

Thailand Prime Minister Srettha Thavisin today announced that an asset management firm is to be established by the Thai government in the first quarter of the year to address the persistent issue of high household debt.

Just another band-aid instead of getting to the bottom of the real issue.

A high percentage of peoples income is less than the required amount to support a family and associated living costs, thus they have to borrow to make up the shortfall.

Eventually debt runs away with them so they find it impossible to keep up with the payments plus interest accrued.

The wages are out of touch with the cost if living... about as far out of touch as the clueless millionaire ministers who have no idea what it's like for the normal folk.

 

 

[hotchilli]

3 hours ago, flyingtlger said:

The government should instead have programs that teach people how to manage and budget their money BEFORE people get into CC debt....

So if they only earn the minimum daily wage and need another 300 baht to live properly as a family what are you going to teach them?

What to give up..., car, motorbike, fuel, electricity, food, clothing, education????

Wages are put of touch with the cost of living... that's the issue.

 

[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.'

[crazykopite]

Would be interesting to know who owns the management company that will deal with this