Thai Central Bank unveils measures to tackle high household debt


Thailand’s household debt has soared to 16.37 trillion baht (US$463 billion), or 90.8 per cent of the nation’s gross domestic product, from less than 14 trillion baht in 2019, as South-East Asia’s second-largest economy struggled to shake off the impact of the Covid pandemic. – Reuters

BANGKOK: Thailand’s central bank announced a slew of relief measures for borrowers struggling to repay home loans and credit card dues, stepping up efforts to tackle the highest household indebtedness in South-East Asia.

The minimum repayment rate of 8 per cent for credit-card users, which the central bank earlier proposed should be increased to 10 per cent from Jan 1, 2025 will be extended until the end of next year. Debtors unable to meet the minimum repayment obligation can seek to restructure their obligations to term loans to be paid back in instalments, Bank of Thailand said in a statement late Friday (Aug 2).

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