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

 

[Peabody]

4 hours ago, webfact said:

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.

Surely they would be selling to those firms at pennies on the dollar.

[watchcat]

4 hours ago, webfact said:

Prime Minister Paetongtarn urged the public to see the initiative as intended for national welfare, rather than a power play.

 

Isn't this what it's all about?  He doesn't have to stay in prison or the hospital and can wandering freeely to any events he likes likes. Jail or deportain would suit him just fine,

[Guderian]

5 hours ago, webfact said:

Thaksin’s plan suggests transferring debts from banks to private corporations, a strategy designed to alleviate the financial burden on individuals without government expenditure.

 

For someone who's supposed to be a high-flying business genius, he doesn't seem to understand much about how finance works.

Unless, that is, he regards this

 

 

as a better alternative to the government paying to help people in debt...

[ikke1959]

It is very bad... I worked for a charitable institution and we were helping people who had debts too. With talking with organizations and businesses we could several times lower the debt if it was paid off immediately..We helped the people unde rthe condition that they paid us back with no interests to help them and beside that they got a kind of coach who went through all their subscription, debts and buyings to prevent that they would fall back in their wrong habit. It worked very well.

 

When rich people are doing the same and take over the debts and get discounts and ask the full or even more interest for the loans people will get in bigger problems. The rich will confiscate everything they can get and the people are left alone with even more than nothing. In the end everything will be of the rich... Bad Idea of the Government. only for own money making pocketfilling.

[Hunz Kittisak]

9 hours ago, MikeandDow said:

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

Google what is debt restructuring 

He is helping the poor to get out of debt 

[MikeandDow]

37 minutes ago, Hunz Kittisak said:

Google what is debt restructuring 

He is helping the poor to get out of debt 

Debt restructuring is a process where a company or individual, facing financial difficulties, renegotiates the terms of their existing debt with lenders to make it more manageable,

the word is Existing Debt with the bank or company       NOT getting loan sharks to buy the Debt

 

Thaskin  totally ignores the basic / root problem: wage levels are too low for people to repay debt !! their loans are largely guaranteed by property which they cannot sell as the market is dead!. second hand vehicles are piling up at an alarming rate as their loans are called in. thaksin is a liability. reduced electricity price by 25% which is impossible. all debts gone by 2027, which is also impossible. pt failed to raise wage levels and their 10k scheme has been a total flop. imf will demand the property market is opened up to the world to bring in income. corruption is costing the country circa 10-15% of gdp ( 300bn baht)

 

[Mason45]

11 hours ago, MikeandDow said:

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

You nailed it Mike.

[redwood1]

23 hours ago, bamnutsak said:

 

 

Yikes.

 

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

 

 

 

Yep Srettha had almost zero going for him....Be he was a heck of a smiler and waver.....Yet compared to little miss crumpet Srettha looks like a political giant...

[lordgrinz]

All you have to ask yourself, is how will Thaksin profit from this, then you'll know why he proposes it.

[stevenl]

14 hours ago, Hunz Kittisak said:

Google what is debt restructuring 

He is helping the poor to get out of debt 

Yes, because the private sector will accept lower interest and longer repayment terms? Really?