PM satisfied with declining household debt

 

BANGKOK, 4 April 2017 (NNT) – The Prime Minister has expressed his satisfaction with a reported decrease in household debt while reminding citizens to be careful with their spending. 

Government Spokesperson Lt Gen Sansern Kaewkamnerd said Prime Minister Gen Prayut Chan-o-cha was pleased with a report from Kasikorn Research Center that household debt in Thailand has dropped for the first time in 11 years. Last year, the household debt-to-GDP ratio edged down from 81.2 percent to 79.9 percent. 

Despite the improving figure, the nation’s accumulated debt remained at a high level, which could affect consumption and purchasing power. Moreover, the report covered only formal debts owed to financial institutions, whereas many debtors were caught up in informal loan schemes. 

Prime Minister Prayut thus called on Thais to maintain spending discipline, keep household accounts, maximize their income through supplementary jobs and prioritize savings. Related agencies were also instructed to help instill knowledge and proper values in the people to allow them to refrain from overspending.

 

-- nnt 2017-04-04

 

Christ we need this man in Britain, we have the most financially illiterate leadership in history who rely on debt for fake GDP growth.

 

Just think if the boomer generation followed his advice from 1997 onwards the exchange rate would be significantly higher.

Crack open those bottles of Kristal Champaign everybody, the house hold

debts have, allegedly, have fallen by what" 0.3 of a percent, halleluiah and

praise Buddha, dose he really expect anyone to take this seriously when

it's well know that house hold debts, the one that the government know about, 

are in the billions?..... 

Last year, the household debt-to-GDP ratio edged down from 81.2 percent to 79.9 percent. 

 

That's great! I guess the remaining 20.1 percent are hi-so and unaffected.
 

1 hour ago, PatOngo said:

Last year, the household debt-to-GDP ratio edged down from 81.2 percent to 79.9 percent. 

 

That's great! I guess the remaining 20.1 percent are hi-so and unaffected.
 

if i understand this correctly all of thailands household debt is about 80% of all the goods and services produced or paid for in a year. i thought it sounded bad but i looked up my own country new zealand and it is about 90%. it must include mortgages to be this high.  our economies appear to becoming dependent on debt to keep growing. have to wonder if that is sustainable.

With a GDP growth of 3%, household debt has actually risen and not declined. 

Those in debt,must have used the 1,500 or 3000 THB(if really poor),given by the Government,

to pay off their debts,and did not spend it on lottery tickets and ,alcohol,it will most likely go 

down again, when the next tranche of money is handed out.

regards Worgeordie

Is that 79.9% a percentage of the annual income of a given household or a percentage of Thailands GDP?

3 hours ago, webfact said:

Last year, the household debt-to-GDP ratio edged down from 81.2 percent to 79.9 percent. 

 

Truly, a great happiness year ending. 

 

When a Thai who makes 9K THB a month can purchase a $600K THB vehicle, regardless of the debt-to-GDP ratio, the banks making these loans will be whinging and crying to the IMF when the debt bubble imploded <which it eventually will>.  But it's not just Thailand, it's most developing and developed nations.  "Buy, buy, buy with debt, debt, debt!"  Banks globally are totally over-extended with sub-prime debt, and when the facade of debt-driven prosperity crumbles, it will make 2008 look like a cake-walk, especially when the CDO and derivatives come due at the commercial bank casinos.

I'm sure the local lenders would disagree 

50 minutes ago, SoilSpoil said:

With a GDP growth of 3%, household debt has actually risen and not declined. 

Good eye!  Nice catch.

Remember:

There are lies,

Damn lies,

and statistics! 

The problem with household debt in Thailand is twofold: first, debt is accumulated on poorly chosen items, EG extravagant, overpriced pickups and , at least in Bangkok, semi-luxury items;  the other issue is loan-sharking and debt that is beyond the capacity to service.

Spending should be encouraged in the context of a well-managed household budget, including a savings plan ( easier said than done for the hand to mouth existence for most low paid workers).

4 hours ago, webfact said:

Prime Minister Prayut thus called on Thais to maintain spending discipline, keep household accounts, maximize their income through supplementary jobs and prioritize savings. Related agencies were also instructed to help instill knowledge and proper values in the people to allow them to refrain from overspending.

and if you do all this, you also may be able to buy a submarine in the future...

One thing for sure PM debt has gone way down TIT

More pearls of wisdom from a leader who is perfectly happy to squander billions of baht of taxpayers' money a pair of chocolate teapots from China.

 

The real-life Thai version of The Army Game gets funnier by the minute.

5 minutes ago, Krataiboy said:

More pearls of wisdom from a leader who is perfectly happy to squander billions of baht of taxpayers' money

I believe you are referring to Thaksin Shinawatra ...... correct  ?   yes but our General Khun Prayuth is going after this criminal as is the revenue dept' to the tune of 17 billion baht.

 

But lets forget about this history and move forward ..... 

2 hours ago, williamgeorgeallen said:

if i understand this correctly all of thailands household debt is about 80% of all the goods and services produced or paid for in a year. i thought it sounded bad but i looked up my own country new zealand and it is about 90%. it must include mortgages to be this high.  our economies appear to becoming dependent on debt to keep growing. have to wonder if that is sustainable.

Pay attention to the other key detail: The  "unofficial" financing market aka loansharks. There has most likely been a move to this market as the  higher risk and marginalized debtors/ borrowers were  removed from the conventional markets once lending criteria tightened.

The developed world acts to limit and shut down such lenders. They exist, but they are on the peripheries of the system. In consumer driven developing countries,  exploitive lenders  are  common because there is little action taken to block or stop their activities, because in some cases these  lenders of last resort are linked to the power structure. 

18 minutes ago, steven100 said:

I believe you are referring to Thaksin Shinawatra ...... correct  ?   yes but our General Khun Prayuth is going after this criminal as is the revenue dept' to the tune of 17 billion baht.

 

But lets forget about this history and move forward ..... 

 Yes, Prayuth is now going after Thaksin's tax bill and hasn't he been quick about it?  

 

He probably needs the cash to pay for the water-tight submarines as part of his water-tight acquision deal with China, which has all the clarity and transparency of the Gulf of Thailand.

6 hours ago, SoilSpoil said:

With a GDP growth of 3%, household debt has actually risen and not declined. 

Also when combined with inflation in the first quarter of the year at 1.25%, household debt has become more expensive to service while wages stagnate and unemployment has increased.

9 hours ago, webfact said:

. Last year, the household debt-to-GDP ratio edged down from 81.2 percent to 79.9 percent. 

And you can take that to the bank. Good thinking PM don't scare the natives they are restless enough. 

3 hours ago, steven100 said:

I believe you are referring to Thaksin Shinawatra ...... correct  ?   yes but our General Khun Prayuth is going after this criminal as is the revenue dept' to the tune of 17 billion baht.

 

But lets forget about this history and move forward ..... 

Thank you Mr. Prayuth for the submarines, helicopters tanks more troops and planes and the trains to nowhere. Shame on you Mr. Thaksin for taking government funds and funding health care with the 30 baht card. 

37 minutes ago, elgordo38 said:

Thank you Mr. Prayuth for the submarines, helicopters tanks more troops and planes and the trains to nowhere. Shame on you Mr. Thaksin for taking government funds and funding health care with the 30 baht card. 

 

..... and stimulating consumption by giving access to cheap credit leading to a progressive rise of household debt. Thaksinomics is and was nothing more than a populist philosophy that put millions in debt and at the heart of the poverty cycle.

Must there always be a rehash of the Thaksin era? How many years have  passed since the defacto coup? Enough time has passed such that Abhisit,the generals and others have more accountability than dear old Thaksin.

1 hour ago, SoilSpoil said:

 

..... and stimulating consumption by giving access to cheap credit leading to a progressive rise of household debt. Thaksinomics is and was nothing more than a populist philosophy that put millions in debt and at the heart of the poverty cycle.

We are all on the debt bandwagon. Its the government crumbs we exist on. If I was a Thai and overburdened with debt I would sure be happy knowing I can get medical attention for only 30 bahts what a deal. Maybe you could weigh for me populism vs this Thank you Mr. Prayuth for the submarines, helicopters tanks more troops and planes and the trains to nowhere. As I understand things governments are to do things for the people ergo populism warts and all. Apart from the above military expenditures what has Mr. Prayuth done now don't rush think this through and get back to us.Try for a real Perry Mason moment not a come fly with me answer. 

1 hour ago, geriatrickid said:

Must there always be a rehash of the Thaksin era? How many years have  passed since the defacto coup? Enough time has passed such that Abhisit,the generals and others have more accountability than dear old Thaksin.

Easy Soilspoil might get a clue from your answer and come back guns blazing. 

13 hours ago, williamgeorgeallen said:

if i understand this correctly all of thailands household debt is about 80% of all the goods and services produced or paid for in a year. i thought it sounded bad but i looked up my own country new zealand and it is about 90%. it must include mortgages to be this high.  our economies appear to becoming dependent on debt to keep growing. have to wonder if that is sustainable.

Well it is in the UK, they borrow money to give it away via their international aid programme crazy IMO!

On 4/4/2017 at 10:25 AM, steven100 said:

I believe you are referring to Thaksin Shinawatra ...... correct  ?   yes but our General Khun Prayuth is going after this criminal as is the revenue dept' to the tune of 17 billion baht.

 

But lets forget about this history and move forward ..... 

The chocolate teapots I was referring to have conning towers instead of spouts. Geddit?