Thai household debt falls as farmers get paid

[webfact]

Household debt falls as farmers get paid



BANGKOK: -- Household debt has decreased from 82.3% last year to 79.4% this year of gross domestic products (GDP).

The permanent secretary of Finance says household debt has decreased after the rice pledging scheme money was disbursed, allowing agriculturists to clear their debts.

Rangsan Sriworasart, the permanent secretary of Finance, said that the Bank of Thailand has reported that household debt dropped from 82.3% of the national GDP in 2013 to 79.4% of the national GDP in 2014.

Household debt is decreasing further since the rice pledging scheme money was disbursed to rice farmers.

The average Thai household debt increased in 2011 after the worst devastating floods, while the first car buyer programme unveiled in 2012, also prompted the public to apply for loans.

Besides, late rice payment to farmers of a huge 92 billion baht under the rice pledging scheme also forced farmers to go for loans from unorganized loan markets.

At present, the situation has been alleviated, with first-time car buyers receiving their tax rebate money, and rice pledging scheme money being fully disbursed.

At the same time, he said Thailand’s economy will grow by no less than 2% this year as consumption and spending by the public show signs of returning to normal.

Source: http://englishnews.thaipbs.or.th/household-debt-falls-farmers-get-paid/

[thaipbs]2014-08-07[/thaipbs]

[jimbeam1]

Yeee haaa, That's a relief.

jb1

[belg]

household depts skyrockets...

 

what do you expect when loansharks ask 20% per month interest ?

[emilymat]

I'm no economist or privy to the intricacies of the rice pledging scheme - although I do understand the principle.

What I find difficult to grasp is how such 'debt' is calculated so quickly. Here's an example of what I mean....

Suppose 5 unfortunate farmers had to borrow 1 million baht between them during the non payment of the scheme money.

Now, if those farmers receive 1 million baht between them as payment by the junta, is it just assumed they pay off the household debt?. What would happen if they used half instead to buy a new TV and wahing machine?. How does the government know?.

Genuinely interested in an answer. Tks

[rickirs]

"Household debt is decreasing further since the rice pledging scheme money was disbursed to rice farmers."

 

The Junta borrowed the money to pay farmers through the government lending institutions so the national debt just went up proportioanaly to the decrease in household debt. It's a wash.
 

[Ricardo]

"loans from unorganized loan markets"

 

Interesting euphemism there !  

[mancub]

And yet household debts soon will rise again amongst farming communities, since they will receive considerably less for their current labours, than they (albeit belatedly) have been accustomed to.
Unless, of course, someone comes up with a cunning scheme to guarantee their income levels......?