BOT to review Minimum credit card debt Payment rate

The Bank of Thailand is contemplating a reduction in the minimum payment rate for credit card debt from 8% to 5% to alleviate the financial strain on consumers.

• The Bank of Thailand is considering reducing the minimum payment rate for credit card debt from 8% to 5% to alleviate the financial burden on consumers during challenging times.
• Rising household debt in Thailand, driven by sluggish economic recovery and slow income growth, is raising concerns about potential long-term impacts on the economy, including the risk of increasing non-performing loans.
• The decision is being finalized urgently, with assurances that sufficient time will be given to financial institutions to adjust their systems for effective repayment management.

This comes amid rising household debt in Thailand, attributed to a slow economic recovery and slow income growth. The change is being discussed urgently, and measures will be taken to ensure financial institutions can adjust effectively. Concerns have been raised about the potential long-term impacts on the economy, including the risk of increasing non-performing loans

Source : BOT Discusses Adjusting Credit Card Minimum Payment