Thaksin's Debt Proposal Stirs Debate as PM Paetongtarn Defends Plan

[webfact]

FILE PHOTO - (AP Photo/Wason Wanichakorn)

 

Prime Minister Paetongtarn Shinawatra has come to the defence of a controversial proposal put forth by her father, former premier Thaksin Shinawatra, intended to tackle Thailand's persistent household debt troubles. Thaksin’s plan suggests transferring debts from banks to private corporations, a strategy designed to alleviate the financial burden on individuals without government expenditure.

 

At a campaign event in Phitsanulok province, Thaksin, unofficial leader of the ruling Pheu Thai Party, emphasised the crippling effect of household debt. His solution involves private entities purchasing the debts, allowing debtors to repay gradually and thereby escape the credit bureau blacklist. "This would require no government funding," he argued, positing that the plan could offer a fresh financial start for many.

 

Prime Minister Paetongtarn urged the public to see the initiative as intended for national welfare, rather than a power play. "It's an idea proposed by someone with the nation's best interests at heart. Let's not politicise it," she urged.

The proposal, however, arrives amid heated political scrutiny. Paetongtarn is set to face a censure debate, where her administration's actions will be examined, including the significant influence Thaksin is perceived to retain.

 

 

 

Finance Minister Pichai Chunhavajira acknowledged the merit in exploring debt restructuring, which could lower repayments via reduced interest or principal amounts. He drew parallels with the "good bank-bad bank" strategy implemented post the 1997 financial crisis, which entailed separating non-performing assets — suggesting that a similar framework could be established now.

 

Yet, concern over the proposed approach echoes in the financial community. Thirachai Phuvanatnaranubala, a former finance minister, critiqued the suggestion, warning that the solution merely relocates debt rather than resolving its root causes.

 

Somchai Srisutthiyakorn, an ex-election commissioner, added skepticism by highlighting the logistics of the plan. He estimated that for private firms to buy all the household debt — totalling 16.3 trillion baht last year as per Kasikorn Research Centre data — around thirty-two companies would each need over 500 billion baht.

 

As this bold proposal stirs varied reactions, the path forward involves considerable consultations with stakeholders, including the Thai Bankers’ Association. The government’s challenge lies in balancing innovative solutions with feasible economic strategies to manage the nation’s debt crisis effectively, reported Bangkok Post.

 

-- 2025-03-19

 

 

[MikeandDow]

So they now are proposing moving debt to loan sharks (private sector) Debt is debt  no matter how you look at it, this guy should be in jail

[bamnutsak]

1 hour ago, webfact said:

Prime Minister Paetongtarn urged the public to see the initiative as intended for national welfare, rather than a power play. "It's an idea proposed by someone with the nation's best interests at heart. Let's not politicise it," she urged.

 

 

Yikes.

 

And here I thought no PM could be worse than Srettha.

 

 

[seajae]

daddy said so,  it  has to be done, there is no doubt thaksin runs the party and what he says goes, so much for the courts and their BS decrees about him not participating in politics