Household Debts To Loan Sharks Likely To Increase.

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From Bangkok Post.

Debts in the unorganised money market - including money owed to loan sharks - are set to rise, as a poor economy and tight credit practices by financial institutions affect Thai wallets, a survey warns.

The survey by the University of the Thai Chamber of Commerce found public consumption has been frozen and people had started using their savings in light of shrinking incomes and costlier product prices.

"Given the poor economy, political instability and the impact of the world financial crisis, deposits in the banking system have dropped from over 1.5 trillion baht to about one trillion or lower, leading banks to tighten their credit lines to the public," said Thanavath Phonvichai, an economist at the university.

Currently, debts in the unorganised or informal sector represent about 20% of all credit outstanding in the country and are worth eight trillion baht.

Article here.