# Thailand is facing 2.67 million debt related cases totaling 16 trillion baht ($442 Bn)

- Link: https://www.thailand-business-news.com/banking/126546-thailand-is-facing-2-67-million-debt-related-cases-totaling-16-trillion-baht-442-bn
- Published: 2024-02-16T09:58:04+07:00
- Author: Zhang Fang

The National Credit Bureau (NCB) reported that Thailand has 2.67 million debt-related
cases totaling 15.99 trillion baht, with 1.05 million cases already ruled in favor
of creditors.

 * The debt situation of Thai people has worsened with 2.67 million cases, totaling
   15.99 trillion baht, currently under legal process, nearing the country’s total
   household debt and GDP.
 * Informal loans account for the highest amount of debt, followed by juristic person
   loans, with housing loans showing a worrying increase in non-performing loans
   due to rising interest rates.
 * The Bank of Thailand’s decision to maintain the interest rate at a decade high
   of 2.5% has sparked concerns about the ability of low-income earners to meet 
   increasing mortgage payments, potentially leading to more defaults.

Around 691,000 cases, amounting to 761 billion baht, are currently in the legal 
execution process. The majority of debt comes from informal loans, followed by juristic
person loans, personal loans, hire purchase loans, and credit card loans.

ADVERTISEMENT

Housing loans are a major concern, with over 180 billion baht in non-performing 
loans and a significant increase in defaults. The rise in interest rates is cited
as the main reason for mortgage defaults, with people earning less than 20,000 baht
per month facing difficulties.

The Bank of Thailand’s Monetary Policy Committee recently voted to keep the rate
at 2.5%, a decade high, despite calls for a rate cut to stimulate the economy.

### Related**Posts**

###  󠀁[USD to THB Exchange Rate Today: Thai Baht Moves with Global Market Trends](https://www.thailand-business-news.com/banking/331689-usd-to-thb-exchange-rate-today-thai-baht-moves-with-global-market-trends)󠁿

###  󠀁[Bank of Thailand Unveils Framework to Shield Financial Sector from Illicit Activities](https://www.thailand-business-news.com/banking/328409-bank-of-thailand-unveils-framework-to-shield-financial-sector-from-illicit-activities)󠁿

###  󠀁[Tokenised Deposits vs Stablecoins: Why Thailand’s Cautious Path Differs from Hong Kong and Singapore](https://www.thailand-business-news.com/banking/321239-tokenised-deposits-vs-stablecoins-why-thailands-cautious-path-differs-from-hong-kong-and-singapore)󠁿

###  󠀁[Thailand’s economy in July saw growth, boosted by the momentum of the global technology and AI cycle](https://www.thailand-business-news.com/banking/326128-the-thai-economy-in-july-expanded-from-the-previous-month)󠁿

## Government’s Determination to Tackle Debt Problems

Prime Minister Srettha Thavisin has reaffirmed the government’s commitment to addressing
both formal and informal debt issues within the span of his administration’s 4-year
term. The progress made in the past two months reflects the sincere intention of
the administration to assist people in breaking free from the burden of debt.

## Groups of Debtors and Progress Made

Debtors are categorized into four main groups, including those affected by the pandemic,
individuals with excessive debt obligations, farmers with irregular incomes, and
those with non-performing loans. Prime Minister Thavisin highlighted the successful
registration of 140,000 informal debtors for government assistance, leading to mediation
and resolution in over 57% of cases. The government’s next steps include securing
low-interest funding for defaulting debtors and ensuring they do not accumulate 
new debts.

High household debt poses a threat to the economic and financial stability of Thailand,
as it reduces the purchasing power and savings of consumers, limits their ability
to invest in education and health, and increases their vulnerability to income shocks
and interest rate changes. Moreover, high household debt can also affect the banking
system, as it increases the risk of loan defaults and non-performing loans.

The Bank of Thailand (BOT) and the National Economic and Social Development Council(
NESDC) have proposed some measures to address the household debt problem in a sustainable
manner. These include improving financial literacy and debt management skills among
consumers, enhancing consumer protection and responsible lending practices, providing
debt relief and restructuring programs for distressed borrowers, promoting income
diversification and social welfare schemes, and supporting economic recovery and
growth.