Thaksin's Debt Solution Sparks Debate Amidst Thailand's Financial Woes

[snoop1130]

Picture courtesy of Soha

 

Former Prime Minister Thaksin Shinawatra is stirring discussion over Thailand's debt crisis, proposing a government intervention to purchase non-performing loans (NPLs) from banks and remove debtors from the credit blacklist. While Thaksin's idea aims to relieve struggling households, it faces scepticism.

 

Thailand's household debt has reached 16.3 trillion baht, nearly 89% of its GDP, with personal NPLs comprising 1.2 trillion baht. The country lacks a "bad bank" to manage toxic debt, hampering effective crisis management. Key obstacles include poor decision-making, dated financial systems, lack of transparency, and uncoordinated debt relief efforts.

 

Although Thai banks are robust, the crisis persists due to absent centralised authority. Establishing a 'bad bank' could centralise debt management, but integrity and transparency are crucial to prevent misuse.

 

 

 

Previous strategies, like asset management firms, and schemes such as "You Fight, We Help," which offers relief to overdue debtors, have seen limited success. The initiative has drawn less participation than anticipated, prompting an extension of deadlines.

 

A recent legal amendment allows small businesses debt restructuring, similar to large corporations, potentially decreasing bankruptcies.

 

The government's response to Thaksin's proposal could greatly influence future financial policies. Whether it becomes a viable solution or remains political rhetoric, the need for effective debt management is critical as Thailand faces mounting economic pressure, reported The Thaiger.

 

-- 2025-03-24

 

 

[Sir Dude]

What irks me about these grandiose ideas is that they are always tailored to help the irresponsible morons who fail and create problems. What about the majority of diligent people who responsibly pay the sky-high interest rates on bank loans at the high street banks (8-9%), and have even submitted land as a guarantee... where's the recognition/benefit for them? Just leaves a bad taste in the mouth of those who honour their committments whilst the idiots get more consideration... calling BS on this.

[Robert_Smith]

Oh it will be financial woes alright...

 

Just wait till the rains come when there are no more tourists to milk.

 

I personally can't wait.

 

bob.

[Jimjim1]

15 hours ago, Sir Dude said:

whilst the idiots get more consideration... calling BS on this.

Sadly it has always been this way  the not want to work brigade gets the cake and cream and everyone else pays for it.

 

[mfd101]

1 minute ago, Jimjim1 said:

Sadly it has always been this way  the not want to work brigade gets the cake and cream and everyone else pays for it.

 

The question is Why?

 

Why do businesses including banks lend money to people who manifestly have no capacity to pay back the loan, tomorrow or any day? Seems to me that the relevant businesses including banks have noone but themselves to blame. They are all familiar with local poverty and cultural issues.

[hotchilli]

15 hours ago, snoop1130 said:

Former Prime Minister Thaksin Shinawatra is stirring discussion over Thailand's debt crisis, proposing a government intervention to purchase non-performing loans (NPLs) from banks and remove debtors from the credit blacklist. While Thaksin's idea aims to relieve struggling households, it faces scepticism

Thaksin's idea... so Paetongtarn is just a puppet, how can the world take Thailands government seriously.

[Jimjim1]

2 minutes ago, mfd101 said:

The question is Why?

Because they take homes and land for security just like the mafia loan sharks.

I have knowledge of one family where the mother borrowed just 350,000baht to buy a car for an errant boyfriend who never paid even the first payment so the bank took the car and sold it but retained the debt and subsequently foreclosed on more than 4 million of property for just 350,000baht.

The ex boyfriend will now be working his magic on another hapless family whilst the family I know about are now homeless and destitute.

[DPKANKAN]

16 hours ago, snoop1130 said:

Thailand's household debt has reached 16.3 trillion baht, nearly 89% of its GDP, with personal NPLs comprising 1.2 trillion baht.

Then add all the underground loan shark borrowings and the country is technically bankrupt ffs!!!

[digger70]

Thaksin's Debt Solution Sparks Debate Amidst Thailand's Financial Woes.

 

What an Idiot  get the peoples tax money to buy the bad loans from the bank so that the no hopers  don't have to pay,

Why the  stupid banks give the loans  in the first instance  to the people that don't earn enough to pay back the bank. 

Clamp down the banks .Let the banks  just arrange a  repay program to pay back the loan just give them  more time .

 

 

[Nid_Noi]

3 hours ago, DPKANKAN said:

Then add all the underground loan shark borrowings and the country is technically bankrupt ffs!!!

Thailand is for sale. All agricultural land is being cleared and put on the auction block. As land ownership is only for Thai, the upper class dictates the price and conditions. There is no competition between buyers, just agreements.

Some areas are an ecological disaster with soil scrapped from its arable land. No farming or crops any longer possible.

Then it sits for years without any takers with weeds growing back with the next monsoon unless a landslide kills any possible deal.

[watchcat]

On 3/24/2025 at 10:06 AM, Robert_Smith said:

Just wait till the rains come when there are no more tourists to milk.

 

There will always bi idiots who'll come dont worry'