NESDB: Thailand's household debt on the decline

[webfact]

NESDB: Thailand's household debt on the decline

BANGKOK, 25 Nov 2014, (NNT) -The National Economic and Social Development Board (NESDB) has said the country's household debt rate has shown signs of decline; however, it urged the officials to be careful not to encourage more loans.

According to Deputy Secretary General of the NESDB, Chutinart Wongsuban, the nation's household debt figure in the 3rd quarter stands at 3 trillion baht, an increase of 8% on-year. The rate however slowed down from 10.7% in the first quarter and 8.8% in the second quarter of this year.

Overall non-performing loans (NPL) continued to rise, standing at 90 billion baht currently, increasing from 29.4% to 31.8% on-quarter, Ms. Chutinart said, adding that officials should keep an eye on the figures, as the livelihood of the people and financial institutions would be affected should the NPL figure keep climbing.

She also recommended that people generate more income, save more money and control their spending.

Employment rate in the agriculture sector declined by 1.8% in the third quarter as a result of drought and floods. However, employment rate outside of the agricultural sector increased by 9.6%, while the overall unemployment rate stands at 0.84%, a slight increase from the previous quarter’s 0.77%, the NESDB’s third-quarter report indicated.


-- NNT 2014-11-25

[clockman]

Could be another white lie?

[PatOngo]

NESDB: Thailand's household debt on the decline

..........................................................and then came the iPhone 7..................................

[Noi657]

NESDB: Thailand's household debt on the decline

..........................................................and then came the iPhone 7..................................

That comment made me chuckle! Cheers for that.

[dinger]

"She also recommended that prople generate more income..." and how do you propose they do that.

[i claudius]

And only last week it was climbing ,amazing Thailand

[worgeordie]

The reason maybe because people are tapped out and cannot get

anymore credit.

regards Worgeordie

[ratcatcher]

And only last week it was climbing ,amazing Thailand

Can't find last week's news, but only 4 months ago it was dire. Magical government solving the problem?

http://www.thaivisa.com/forum/topic/745727-thai-poll-shows-household-debts-the-worst-in-nine-years/

[webfact]

Household debt eases



BANGKOK: -- The National Economic and Social Development Board (NESDB) says the country's household debt rate has shown signs of decline.

NESDB deputy secretary-general Chutinart Wongsuban said household debt figure in the third quarter stood at three trillion baht, an increase of 8% on-year.

The rate, however, showed a decline from 10.7% in the first quarter and 8.8% in the second quarter of this year.

But she said overall non-performing loans (NPL) continued to rise, standing at 90 billion baht currently, increasing from 29.4% to 31.8% on-quarter.

She cautioned that officials should keep an eye on the figures, as the livelihood of the people and financial institutions would be affected should the NPL figure keep climbing.

She also recommended that people generate more income, save more money and control their spending.

Employment rate in the agriculture sector also declined by 1.8% in the third quarter as a result of drought and floods.

However, employment rate of non agricultural sector increased by 9.6%, while the overall unemployment rate stands at 0.84%, a slight increase from 0.77% in the previous quarter.

Source: http://englishnews.thaipbs.or.th/household-debt-eases


-- Thai PBS 2014-11-25

[tingtong]

NESDB just yesterday said that unemployment is growing problem....

The fact. when unemployment is growing ( of course it does, as the numbers always a lie, 0.8% included)....then household debt usually not about to decline, but to grow further...which most probably it will.

[Commerce]

"She also recommended that people generate more income, save more money and control their spending."

Keeping up with the Jones's is priority number 1 in the modern era of Thai development..... a 1960's copy of the West (as it's always 50 years behind)

"Honey, next door just got a a new Honda CRV, what on earth are we going to do?"

"Don't worry, sweetheart, I'll nip down to the bank and get a loan no probs, what would you like? And, all of a sudden, don't speak with your mouth full!"

[NeverSure]

"But she said overall non-performing loans (NPL) continued to rise, standing at 90 billion baht currently, increasing from 29.4% to 31.8% on-quarter."

I'm having trouble getting my head around this. Did it really mean to say that 31.8% of consumer loans are non-performing? That's an outrageous, bank-busting number if it's true.

[Lobo4819]

...and I'm sure that the figures quoted represent an accurate reflection of all the illegal lenders to whom this culture is so very indebted.

[cmsally]

OK if I understand correctly = household debt still increasing but RATE of increase slightly declining.

Did I miss something?

[HiSoLowSoNoSo]

31.8% of consumer loans are non-performing, that is very serious. What is the plan? write it off Thai style and start all over again?

[NongKhaiKid]

Fear not, the friendly neighbourhood loan shark is always around.

[Doc46]

Could be another white lie?

For sure Not a white lie just Bullshit Only a couple weeks ago they said it was on the increase and the highest ever.

[elgordo38]

NESDB just yesterday said that unemployment is growing problem....

The fact. when unemployment is growing ( of course it does, as the numbers always a lie, 0.8% included)....then household debt usually not about to decline, but to grow further...which most probably it will.

They should put a traffic counter outside the pawn shops to get a true picture.

[Thomas Hannah]

Today.We will be looking through the round window.

[chotthee]

Big big thank you to PM Prayuth. Now you have truely return happiness to all Thai.

At the rate it is going, all Thais will be debt free by December next year.

You are wonderful.

[robblok]

OK if I understand correctly = household debt still increasing but RATE of increase slightly declining.

Did I miss something?

Yes they spin a negative ( debt still raising) as a positive.

Only it raises less fast.

[BritManToo]

It actually says the rate of increase is declining.

Household debt is still increasing, just not as quickly.

Rate of increase was 10% per year, now only 8% per year, and only for this quarter.

[wabothai]

A lot of people paid off their loans I guess.

[retarius]

Do a little math in your head and this is nonsense:

I billion baht is approx $30 million

90 billion baht is approx $2,700 million ie $2.7 billion (non performing loans)

Total household debt is 3 trillion baht is approx $100 billion....(3000 billion divided by 30)

So with all those repossessed pick-ups on new lots opening up every day all over the country, the non performing loans are less than 3% of the total portfolio of loans....not the country I live in for sure.

[rickirs]

“However, employment rate outside of the agricultural sector increased by 9.6%, while the overall unemployment rate stands at 0.84%, a slight increase from the previous quarter’s 0.77%, the NESDB’s third-quarter report indicated.”

On 2014-10-12 the National Statistical Office reported: “The number of jobless for the month of September has increased to 311,000 constituting an increase of 40,000 or 14.76 percent from the same period last year or 24,000 representing an increase of 8.36 percent from August …”

50% of the jobless for September 2014 were those who used to work and split almost 50-50 between the production and service sectors; agricultural sector jobless was de minimus.

Those employed in the production and service sectors would have had higher incomes than the agricultural sector and most probably higher household debt. I don’t see how one can expect then that household debt will decline with greater job loss in those two sectors. If anything household debt will increase because now those unemployed must now borrow to maintain debt service.

[retsdon]

Consumer spending down = a decline in consumer loans = good. But consumer spending down = declining sales = declining employment opportunities = consumer spending down = etc, etc = bad. It's the classic economic death spiral. At some point more of the outstanding loans are going to go bad, despite people's efforts to pay them down. Either which way, it looks like the party might be over for a while.

[cheeryble]

This article is absolute piffle.

For a start CMSal is likely correct it's the RATE that's fallen a little but the whole point of the article seems to be upside down as debt is up.

Second this woman shouldn't be telling people they should be earning more money, it's none of her business.

Third what does 30% NPLs MEAN?

(Cannot believe it's simply 30% of loans don't get paid, it's far too high.)

[Ulic]

Always a difficult balance. Households spending money taking on debt drives the economy, but two much debt

and the economy and banking system become a house of cards. So make what you want of this announcement,

even if you think it is accurate.

[chooka]

And only last week it was climbing ,amazing Thailand

Yes and then the dear leader panicked and brought in the dept of lies/propaganda to tell all to be happy and you are all much richer now under the military now all cheer and bow to dear leader.