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HomethailandgeneralGovt offers schemes to reduce household debt

Govt offers schemes to reduce household debt

The government aims to bring household debt down to less than 80% of gross domestic product (GDP) while offering various debt-settlement measures to help people who are struggling, deputy government spokeswoman Rudklao Suwankiri said on Friday.

According to the Bank of Thailand, household debt came to 16 trillion baht, or 90.6% of GDP, in the first quarter.

Marking Navamindra Maharaj Day on Friday, the Government Savings Bank (GSB) began offering options for people who have difficulty repaying their debts and those whose debts have been classified as non-performing loans (NPLs), said Ms Rudklao.

This is a part of the government’s economic development policy, which aims to help debtors settle their debt problems, reduce their cost of living, and improve their capability to boost their income, she said.

From now until Dec 30, the GSB is allowing debtors to choose to suspend repaying the capital and continue paying only the interest at a rate ranging from 25% to 100% of the usual monthly rate, she said.

Those whose debts were classified as NPLs before Dec 30 will be spared from bankruptcy suits and asset confiscations if they agree to repay their debts at discounted interest rates, she said.

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