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Addressing Thailand’s household debt problems (BoT)
Beginning in April 2024, measures will be put in place to resolve persistent debt among vulnerable groups with higher interest payments, offering assistance to speed up debt repayment and reduce interest burden.
The BOT aims to ensure fairer debtor protection by regulating interest rates and fees, providing accurate and comprehensive information to debtors, and fostering financial discipline through responsible borrowing.
The Bank of Thailand (BOT) is focused on addressing household debt problems through various measures. They have implemented debt assistance programs and issued guidelines on Responsible Lending for creditors. The key takeaways include:
- Continuing debt restructuring for retail and SME debtors facing repayment difficulties.
- Resolving persistent debt among vulnerable groups with higher interest payments.
- Ensuring fairer debtor protection by regulating interest rates, fees, and providing accurate financial information.
Beginning in April 2024, measures will be put in place to resolve persistent debt among vulnerable groups with higher interest payments, offering assistance to speed up debt repayment and reduce interest burden.
From April 1, 2024 onwards, individuals with revolving personal loans (excluding auto loans, digital personal loans, and credit card loans) that are not yet classified as non-performing loans and have had a higher proportion of interest payments than principal payments over the past 3-5 years will receive assistance from creditors. This assistance aims to expedite debt repayment and reduce the burden of interest. These individuals will be encouraged to promptly negotiate a repayment solution with their creditors.
Additionally, the BOT emphasizes the importance of debtors’ responsible borrowing and financial discipline. They will closely supervise creditors to ensure compliance with regulations and offer appropriate assistance to debtors. Lastly, they plan to utilize new tools and data for effective monitoring and proactive supervision.
Source : https://www.bot.or.th/en/news-and-media/news/news-20240117.html
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