Thailand to roll out relief measures for household debt

THAILAND will introduce debt relief measures, including lowering interest rates and debt suspensions to manage the country’s household debt, Prime Minister Srettha Thavisin said on Tuesday (Dec 12).

The measures follow a separate programme to tackle informal debt in the country. They will be aimed at helping about 10.3 million people struggling to service debt, Srettha said.

“Debtors will be able to enter debt clinics… and we will reduce risk across the financial system going forward,” he said, adding the measures will cover teachers and civil servants in debt.

Credit card debtors will be charged lower interest rates while debt suspension will be offered to farmers, he also said.

Thailand has household debt worth 16 trillion baht (S$603.3 billion), said adviser to the prime minister, Kittiratt Na-Ranong.

In the second quarter of 2023, the ratio of household debt to gross domestic product stood at 90.7 per cent.

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There will be additional measures to improve financial management and savings programmes, Srettha said.

“In the long run, we will improve credit and risk assessment of institutions… and financial management skills of the public,” said the prime minister, who is also finance minister.