World

Thai cabinet approves measures to ease household debt

The government has been trying to ease the debt burden of households, which it sees as a constraint on consumption and economic growth.

Updated 1 year ago · Published on 12 Dec 2024 5:32PM

Thai cabinet approves measures to ease household debt
Paetongtarn, the 38-year-old daughter of billionaire former premier Thaksin Shinawatra, was elected by Parliament in August - December 12, 2024

THAILAND's cabinet approved debt support measures, including interest suspensions and reduced principal payments, to help tackle household debt, Prime Minister Paetongtarn Shinawatra said.

According to foreign reports, the measures will support retail borrowers and smaller businesses and solve debt problems more tangibly and sustainably, she told a press conference.

The government has been trying to ease Thailand's household debt burden, which it sees as a constraint on consumption and economic growth.

“In 2025, it will be the year of tangible opportunities and hopes. The government will create tangible results to make dreams come true. Tangible policies,” she said.

Paetongtarn, the 38-year-old daughter of billionaire former premier Thaksin Shinawatra, was elected by Parliament in August to become Thailand’s youngest prime minister, just days after a court’s shock removal of party ally Srettha Thavisin.

Finance Minister Pichai Chunhavajira told reporters the cabinet also agreed to allow banks to pay a reduced annual contribution of 0.23 per cent of their deposits to the Financial Institutions Development Fund (FIDF) for three years.

The reduced FIDF contributions would help banks support debtors, officials have said.

The measures will help borrowers with debts that are up to a year overdue, covering housing loans of up to 5 million baht (US$148,060), car loans not exceeding 800,000 baht and smaller firms' loans of up to 5 million, the government said in a statement.

The government has been trying to ease the debt burden of households, which it sees as a constraint on consumption and economic growth.

Thailand had an 89.6pct household debt-to-GDP ratio at the end of June, amounting to 16.3 trillion baht (US$482 billion), among the highest levels in Asia. - December 12, 2024

Related News

Malaysia / 1w

PM denies rumours he bought new BMW; Urges rakyat to reject extreme racism, hate politics

Malaysia / 1w

Banks need to do more to help counter rising costs of living – Guan Eng

Malaysia / 2w

Indian community in Johor urged to judge PH by track record ahead of state polls

Malaysia / 1mth

PM scheduled to officially launch LRT3 line this Sunday

Malaysia / 1mth

Bangladesh PM Tarique given official welcome

Opinion / 1mth

A call for the government to stand and act

Spotlight

Malaysia

Anwar, Zahid project unity at Putrajaya amid PH-BN differences during state polls

By Alfian Z.M. Tahir

Malaysia

Police looking for two robbery suspects who kicked elderly woman (video)

Malaysia

Malaysia will not bow to US congressional pressure over Israeli nationals’ issue - Loke (UPDATED)

Malaysia

Deaf e-hailing driver sues government, police over alleged assault, seeks disability access reforms

By Alfian Z.M. Tahir

Malaysia

Johor appoints 10 deputy exco to strengthen administration

Malaysia

Suspended police corporal charged with sexual assault of 11-year-old daughter

Malaysia

Magnitude 5.7 earthquake off northern Sumatra felt across west coast of Peninsular Malaysia

World

Trump approves potential US-Saudi nuclear deal allowing uranium enrichment capability

Malaysia

Network School moves to Kazakhstan

You may be interested

World

Trump announces future tariffs on generic drug imports to boost US pharmaceutical production

World

France heatwave death toll rises to nearly 5,800 as extreme temperatures trigger record mortality

World

Iran’s revolutionary guards claim to block three oil tankers in Strait of Hormuz as tensions rise

World

Gaza’s water crisis deepens as families face thirst, disease and collapsing sanitation systems

World

UN report warns online scams in Asia-Pacific caused up to US$114 billion losses last year

World

US launches 11th night of strikes on Iran as Hormuz crisis deepens and diplomacy falters

World

USAID funding cuts force Nepal’s LGBTQ+ HIV outreach workers into sex work

World

Malaysia ranks among top 10 globally as Singapore retains world’s most powerful passport