Connect with us

Banking

Household debt peaks to highest level in nine years

Thailand’s household debts have increased to 298,005 baht per household which is the highest in nine years, according to the findings of the University of Thai Chamber of Commerce.

Boris Sullivan

Published

on

Thailand’s household debts have increased to 298,005 baht per household which is the highest in nine years, according to the findings of the University of Thai Chamber of Commerce.

Thanavath Phonvichai, director of UTCC’s economic and business forecasting centre, said on Thursday the figures were based on a survey of around 1,200 people this month.

The survey found that household debt rose 20% from about 248,000 baht per family last year.

He noted that household debts increased by an average of 20,000-30,000 baht a year, but, for this year, the debts jumped to 50,000 baht per household by average and the main cause of the increased household debt stems from the obligation to pay instalments for car, credit cards and consumer products averaging 14,889 baht each month.

creditcar

The Yingluck government’s “first car” policy was blamed for causing household debts to jump sharply.

Thanawat said the findings also show 74 percent of the debtors have defaulted their repayments because their earnings are not enough to repay the debts so creditors who are slow are likely not to get paid on schedules.

Yingluck government’s “first car” policy pointed out

The Yingluck government’s “first car” policy was blamed for causing household debts to jump sharply.

A previous government policy of tax rebates for people buying their first automobiles had triggered the continuing double-digit increase in household debt, he said.

The percentage of informal debt dropped noticeably from 51% to 38%, the lowest proportion in eight years, thanks to lending by state-run banks to debtors, bringing them into the formal financial sector.

loanshark2

This relief measure would slow the pace of household debt, Mr Thanavath said.

The formal debt was up from 49% to 62%.The purchase of durable goods including houses and automobiles increased the debts of 19% of respondents; rising instalments affected 18% of them, and the increased cost of living raised the debts of 13% of the surveyed people.

Source: Household debt at nine-year peak | Bangkok Post: news

Continue Reading
Advertisement Load WordPress Sites in as fast as 37ms!
Comments

Banking

Thai Baht currency control mulled by central bank

The Industry Minister proposed measures to help business owners, such as the promotion of Thai Baht as a currency for international trade to reduce the risks from US Dollar currency fluctuation

National News Bureau of Thailand

Published

on

BANGKOK, 15th August 2019 (NNT) – The Minister of Industry has held talks with the Bank of Thailand’s Governor over measures to control the fluctuation of Thai Baht currency, minimize impacts faced by SMEs and promote the import of machinery during this time to take advantage of the stronger currency.

(more…)
Continue Reading

Banking

Thailand’s dangerous debt addiction

Thailand is now a top-ten highest household debt country among 89 countries worldwide and third highest among 29 Asian countries.

Olivier Languepin

Published

on

Thailand’s household debt has steadily increased to 78.6% of the country’s gross domestic products (GDP), or Bt12.8 trillion in the fourth quarter of last year, according to figures from the National Economic and Social Development Council.

(more…)
Continue Reading

Banking

Thailand’s four challenges : Debt, inequality, plastics and climate change

Thais tended to get into debt faster, for longer and for higher amounts. Indebtedness starts as soon as they begin to work at age 25 and can increase until 56 years old.

Avatar

Published

on

Bank of Thailand Governor Veerathai Santiprabhob, in his speech entitled “Formulating for the Future of Corporate Governance”, delivered at the Finance and Beyond National Director Conference 2019 in Bangkok (July 24th), said Thailand faces four challenges that require good governance in businesses to address.

(more…)
Continue Reading

Most Read

Upcoming Events

Sep 19

ASEAN (Bangkok)Toys and Preschool Expo

September 19 @ 10:00 am - September 21 @ 7:00 pm BMT
Oct 16

GovInsider Live

October 16 - October 17
Nov 27

The Future Energy Show Thailand

November 27 @ 10:00 am - November 28 @ 5:30 pm BMT
Dec 05

The Healthcare+ Expo Taiwan

December 5 @ 9:00 am - December 8 @ 5:30 pm BMT

Press Release

Subscribe via Email

Enter your email address to subscribe and receive notifications of new posts by email.

Join 11,077 other subscribers

Trending