BANGKOK (Reuters) – Thailand will introduce debt relief measures including lowering interest rates and debt suspensions to manage the country’s 16 trillion baht ($450.70 billion) worth of household debt, Prime Minister Srettha Thavisin said on Tuesday.
The measures will be aimed at helping about 10.3 million people struggling to service debt, Srettha said, and follow a separate programme to tackle informal debt in the country.
“Debtors will be able to enter debt clinics … and we will reduce risk across the financial system going forward,” he said at a press conference, adding the measures will cover teachers and civil servants in debt.
Credit card debtors will be charged lower interest rates while debt suspension will be offered to farmers, he said.
Thailand has household debt worth 16 trillion baht, said adviser to the prime minister, Kittiratt na Ranong.
In the second quarter of 2023, the ratio of household debt to gross domestic product stood at 90.7%.
There will be additional measures to improve financial management and savings programmes, Srettha said.
“In the long run we will improve credit and risk assessment of institutions … and financial management skills of the public,” said Srettha, who is also finance minister.
($1 = 35.50 baht)
(Reporting by Orathai Siring and Chayut Setboonsarng, Editing by Kanupriya Kapoor)
