Thais are increasingly in debt, default

[webfact]

Thais are increasingly in debt, default
By Digital Content



BANGKOK, Aug 25 -- The Office of the National Economic and Social Development Board (NESDB) reported the Thai people were increasingly in debt and default in the second quarter of this year as well as lower employment and higher unemployment in the period.

NESDB deputy secretary-general Chutinart Wongsuban said that in the second quarter employment dropped by 2.8 per cent and employment in the agricultural sector fell by 17.9 per cent due to drought.

She said unemployment did not raise any concern because one-third of it involved those who never had a job. Despite a high unemployment rate, incomes still increased.

Ms Chutinart said incurred household debts slowed down in accordance with economic situations but default rose, especially with consumer loans. The amount of credit card debts outstanding for longer than three months increased by 28.4 per cent.

There are 1.5 million migrant workers in Thailand and they form 4 per cent of all the people who have jobs in the country. She said there are about 20,000 illegal migrant workers and Thailand has yet to seriously integrate efforts to tackle human trafficking.

The NESDB deputy secretary-general also said that Thailand should speed up improving the productivity of farm labour, comprehensively tackle narcotics, reduce traffic accidents involving passenger vans, push for a law to regulate surrogacy and promote proper age-related development among Thai children.

In the second quarter, the overall number of crimes dropped, but crimes against life, physical harm and sexual crimes tended to be more violent. (MCOT online news)


-- TNA 2014-08-25

[gemini81]

The system is designed to keep people in debt, a debt-based economy. That is why banks are in business, and how they are able to swindle people.

[Paulzed]

"Thais are increasingly in debt"

That's because they are still paying for Thaksins luxurious overseas holiday

[GuestHouse]

I have a friend who's Master Dissertation (NIDA) was a study of personal debt in Thailand, he told me that what he learned during that study caused him to loose a lot of sleep.

It is since discussing the issue with him that I have frequently suggested an expose on the transfer of land tittle deeds.

[DaamNaam]

No, i find this hard to believe....

Not...

[DaamNaam]

The system is designed to keep people in debt, a debt-based economy. That is why banks are in business, and how they are able to swindle people.

In a nutshell yes...

It's a worldwide scam... Thai's aren't the only ones.

Just a bit more gullible perhaps.

[Robespiere]

"Thais are increasingly in debt"

That's because they are still paying for Thaksins luxurious overseas holiday

Ridiculous.

[trogers]

It is not just the Thai households having increasing debts. The country itself has a massive increase in government debts incurred by the previous government.

Economic growth then was based on increasing debts, similar to what China did and is still doing, abet on a smaller scale.

Edited August 25, 2014 by trogers

[american12bthai]

this is thailand, it is more important to spend your money on Alcohol and women, banks do not encourage saving, there is no difference between a current account or a savings account. in order to get rid of this mentality, alcohol advertisements need to be shut off and kids need to be taught how to save.

[Jeremy50]

When people have few interests apart from shopping and facebook it's bound to end in tears.

[chiang mai]

The country itself has a massive increase in government debts incurred by the previous government.

Economic growth then was based on increasing debts, similar to what China did and is still doing, abet on a smaller scale.

Not true at all:

http://www.tradingeconomics.com/thailand/external-debt

The debt to GDP ratio remains low.

http://www.tradingeconomics.com/thailand/government-debt-to-gdp

Foreign currency reserves remain stable.

http://www2.bot.or.th/statistics/BOTWEBSTAT.aspx?reportID=94&language=ENG

THB has strengthened.

http://www.oanda.com/currency/historical-rates/

Exports are growing

http://www.tradingeconomics.com/thailand/exports

Where's the beef?

[chainarong]

I think if you study most western countries the picture would be the same ,but for different reasons, Thailand writhers in agony as an emerging economy so its an in-between , unfortunately this has been the case for at least twenty years,and has stagnated, whilst you have prices going up and the wages standing virtually still, farm hands have been on 9000Bht PMC for two decades , its not surprising that something has to give, as long as the administration bows to big business and Thai's have limited spending power, nothing will improve, except the poor will certainly get poorer.

[ColdSingha]

The country itself has a massive increase in government debts incurred by the previous government.

Economic growth then was based on increasing debts, similar to what China did and is still doing, abet on a smaller scale.

Not true at all:

http://www.tradingeconomics.com/thailand/external-debt

The debt to GDP ratio remains low.

http://www.tradingeconomics.com/thailand/government-debt-to-gdp

Foreign currency reserves remain stable.

http://www2.bot.or.th/statistics/BOTWEBSTAT.aspx?reportID=94&language=ENG

THB has strengthened.

http://www.oanda.com/currency/historical-rates/

Exports are growing

http://www.tradingeconomics.com/thailand/exports

Where's the beef?

hang on, dont let the facts get in the way of a good (political) argument

[ramrod711]

. The amount of credit card debts outstanding for longer than three months increased by 28.4 per cent. What interest rate 18.5%, it's a world wide disgrace. I see more and more people using credit cards in Big C and other stores to buy groceries. I don't know if they're doing it for rewards, air miles or whether they don't have cash for food. I hope they know what they are doing because banks know no shame. A bank in Canada loaned my 80 year old father $180,000 against his house, the payments ate up his pension and left him in a position where he couldn't go into a retirement home.

[worgeordie]

Its a got to have it,got to have it now ,world, thats they keep making

new models cars,tv,phones,and stupid people are drawn in to have

the latest model,even though there is nothing wrong with the one they

already have.

regards worgeordie

[hotsoup]

You remember when Salomon could not sell skis in Japan because Japanese snow was not like other snow? And when Japanese people do not get AIDS because Japanese blood is not like other blood?

Well., I can assure you Thai debt is NOT like other debt...........partly because 20 people buy the family Hilux and the same 20 people use and pay for/or not the Credit Card

[jimbo34]

If you offer a thai a loan/credit he/she will always accept, regardless of ability or intention to repay.

[longtom]

There are 1.5 million migrant workers in Thailand and they form 4 per cent of all the people who have jobs in the country. She said there are about 20,000 illegal migrant workers and Thailand has yet to seriously integrate efforts to tackle human trafficking.

20´000 illegal migrant workers in Thailand? That would mean all of them (and a few more) are on Samui only!

[djjamie]

When that ill thought out policy called the "one village" fund was introduced by TRT, household debt had gone up almost 100 percent. It significantly increased from 68,405 Baht in 2000 to 110,133 Baht in the first quarter of 2004.

Lets hope the Junta can curb this and repair the damage done by the previous administration.

[trogers]

The country itself has a massive increase in government debts incurred by the previous government.

Economic growth then was based on increasing debts, similar to what China did and is still doing, abet on a smaller scale.

Not true at all:

http://www.tradingeconomics.com/thailand/external-debt

The debt to GDP ratio remains low.

http://www.tradingeconomics.com/thailand/government-debt-to-gdp

Foreign currency reserves remain stable.

http://www2.bot.or.th/statistics/BOTWEBSTAT.aspx?reportID=94&language=ENG

THB has strengthened.

http://www.oanda.com/currency/historical-rates/

Exports are growing

http://www.tradingeconomics.com/thailand/exports

Where's the beef?

External debt? The government borrowed from its own banks...and these debts would be under which account in your stats?

Has the Chinese government been selling bonds in the international market?

Edited August 25, 2014 by trogers

[chiang mai]

The country itself has a massive increase in government debts incurred by the previous government.

Economic growth then was based on increasing debts, similar to what China did and is still doing, abet on a smaller scale.

Not true at all:

http://www.tradingeconomics.com/thailand/external-debt

The debt to GDP ratio remains low.

http://www.tradingeconomics.com/thailand/government-debt-to-gdp

Foreign currency reserves remain stable.

http://www2.bot.or.th/statistics/BOTWEBSTAT.aspx?reportID=94&language=ENG

THB has strengthened.

http://www.oanda.com/currency/historical-rates/

Exports are growing

http://www.tradingeconomics.com/thailand/exports

Where's the beef?

External debt? The government borrowed from its own banks...and these debts would be under which account in your stats?

Which government borrowed from which banks, precise amounts and links please, just so we all understand what we're discussing here.

Big sigh! Banks make loans, voluntarily or otherwise, regardless, those assets appear on their books until they are redeemed. So, are we going to talk about government debt or individual bank liquidity and profitability.

Edited August 25, 2014 by chiang mai

[dominique355]

If you offer a thai a loan/credit he/she will always accept, regardless of ability or intention to repay.

Yes, but if I (a farang) apply for a credit card, I am rejected because as a retired person, I have no regular income. My savings are good for a couple more years of peaceful life but banks in Thailand don't trust me. So, no credit card for me, at least not from a Thai bank.

TMB actually even told me that they would not accept farangs as clients, no mater how wealthy. (TMB branch in Central World).

Probably because I would not venture into costly loans and pay my credit card every months in full, so not much to profit from a farang, with (still) some marbles in his head.

[chiang mai]

TMB can be odd that way, I have problems with them also but others do not, depends on the branch.

[Thanet]

This is not a Thai thing. The same problem exists everywhere.

People are just too greedy, and the financial system is adept in exploiting that greed -- selling unsophisticated folk the story that assets can only go up in value, and making credit cards out to be glamorous, when in fact they are very dangerous.

The only solution to living debt free is to live within your means.

[chiang mai]

This is not a Thai thing. The same problem exists everywhere.

People are just too greedy, and the financial system is adept in exploiting that greed -- selling unsophisticated folk the story that assets can only go up in value, and making credit cards out to be glamorous, when in fact they are very dangerous.

The only solution to living debt free is to live within your means.

Except, Mrs CM's niece is a very bright girl, top grades year on year. She finally got accepted for medical school and the government will pay for four years of her tuition, the family must find the rest. And the family is as poor as poor can be, the niece started classes with less than a thousand baht in her pocket and no chance of the family finding much more - so I'm doing my subsidy trick, other families don't have a "me" to help out, what are they supposed to do, tell the girl she has to go work in a bar or in Tesco?.

[h90]

The system is designed to keep people in debt, a debt-based economy. That is why banks are in business, and how they are able to swindle people.

The banks swindle at people and people believe there is a free lunch.....

[tingtongfarang]

If you offer a thai a loan/credit he/she will always accept, regardless of ability or intention to repay.

While out and about with thais it often happens they get a call...after a few seconds they start to answer with...kotote mai mi tang,

mostly its the loan company or the bank asking them to get payments upto date,

motocyc, car, truck, phone are the culprits

[icare999]

this is thailand, it is more important to spend your money on Alcohol and women, banks do not encourage saving, there is no difference between a current account or a savings account. in order to get rid of this mentality, alcohol advertisements need to be shut off and kids need to be taught how to save.

cone on west is no better i sometimes think i and a few my age are only ones not in debt and to be honest id be much better off if id borrowed to hilt like others i know put it into more property and let government make sure we dont sink just like banker @##$$% but less money. Since it cannot continue for ever world and west need a sharp shock to get back on course. When i dont know but probably before go and I'm over 80+. This mad dash to materialism has got to end and it will in tears for most but not for mega rich

[UbonOz]

Worth watching.

[jimbo34]

If you offer a thai a loan/credit he/she will always accept, regardless of ability or intention to repay.

Yes, but if I (a farang) apply for a credit card, I am rejected because as a retired person, I have no regular income. My savings are good for a couple more years of peaceful life but banks in Thailand don't trust me. So, no credit card for me, at least not from a Thai bank.

TMB actually even told me that they would not accept farangs as clients, no mater how wealthy. (TMB branch in Central World).

Probably because I would not venture into costly loans and pay my credit card every months in full, so not much to profit from a farang, with (still) some marbles in his head.

I got a credit card from Kasikhornbank just because you need one to book flights, hotels etc online, but had to deposit the same amount with them beforehand, as i wanted to "borrow". That way they're always assured of getting their money. I went ahead with it anyway, seeing as being without a credit card is such a hassle, for the things i mentioned.