Israel is at War - General discussion (pt3)
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IMF Urges Thailand to Strengthen Support for Families Facing Debt Crisis
Picture courtesy of Wikipedia The International Monetary Fund (IMF) has issued a stark warning to Thailand to enhance support for struggling families to prevent millions from remaining trapped in a debilitating cycle of debt. Released on April 9, the IMF's Country Focus report emphasizes that over half of Thai workers lack formal employment, which deprives them of job security and essential social protections, leaving them vulnerable to economic disruptions. Many households are resorting to borrowing just to cover basic living expenses, creating a cycle of informal debt that poses a threat to Thailand's financial stability. Although the household debt-to-GDP ratio has slightly decreased to 89% from its pandemic peak, it remains worryingly high. An IMF spokesperson cautions that if this issue is addressed too aggressively without considering broader implications, it could harm consumer spending and business confidence by inadvertently tightening credit. To adequately address the issue, the IMF recommends that Thai policymakers intensify social protections, decrease dependence on informal lending, and foster long-term financial resilience. Thai officials have already initiated several measures, such as repayment assistance, debt restructuring, regulatory crackdowns, and financial literacy campaigns. A significant initiative includes the You Fight, We Help relief scheme introduced in December 2024, which offers borrowers reduced payments, waived interest, and flexible repayment terms. The Bank of Thailand's responsible lending guidelines, implemented in January 2024, have facilitated the restructuring of over 7 million accounts, with new borrowing caps based on asset levels aimed at curbing excessive debt. However, the IMF insists that further action is necessary, particularly concerning persistent, non-viable debt that permanently excludes borrowers from the formal credit system. The report suggests streamlining personal bankruptcy laws and establishing an efficient debt resolution system. It also urges the Thai government to collaborate with the private sector to lower the costs of household debt resolution. The IMF cites Brazil as a successful example, highlighting a program that allowed defaulters to settle loans at significant discounts through banks without requiring taxpayer funds. This initiative helped over 15 million people restructure debts totalling 52 billion reals, nearly 0.5% of Brazil's GDP between July 2023 and May 2024. The IMF's message is unequivocal: to prevent a household debt crisis from escalating into a national one, Thailand must invest in sustainable support mechanisms for its most vulnerable citizens or risk them falling further into financial distress, reported The Thaiger. -- 2025-04-11 -
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Drunk Drivers Face Morgue Visits in Thai Road Safety Push
once you go black you never go back ! -
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Drunk Drivers Face Morgue Visits in Thai Road Safety Push
Is that a promise buttercup? -
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Trump Warns Israel Would Lead Strike if Iran Refuses to Abandon Nuclear Ambitions
If only there was a treaty with Iran not to produce nuclear weapons. -
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Drunk Drivers Face Morgue Visits in Thai Road Safety Push
Talking to yourself again and yet no answer to the basic question you were asked!! Good bye, I will not respond again to your asinine responses! -
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Trump Warns Israel Would Lead Strike if Iran Refuses to Abandon Nuclear Ambitions
The real terrorists....
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