“We’ve faced debt problems for a long time and we can’t solve anything,” university president Thanavath Phonvichai told a briefing.
Of the average debt, 30 per cent was informal loans, up from about 20 per cent in 2023 as banks have tightened credit, Thanavath said.
The use of illegal loan sharks is rife among lower-income families who are unable to get bank loans, with many people trapped by debt with high interest rates.
The Federation of Thai Industries has cut its domestic vehicle sales target for this year by 200,000 units to 550,000, saying that high household debt and tighter lending rules were hitting demand.
Finance Minister Pichai Chunhavajira has said there is an urgent need to fix debt problems. He has said the central bank should assist retail borrowers, and that he will talk with banks about providing further assistance to debtors.
New Prime Minister Paetongtarn Shinawatra, who took office last month, has promised to stimulate the economy right away.
The government said on Monday it would distribute 145 billion baht (US$4.3 billion) of its “digital wallet” stimulus programme this month, earlier than scheduled, to support vulnerable groups.
Source: CNA
