Bangkok, July 3 – The Bank of Thailand pointed out that in the first quarter of 2023, household debt was 16 trillion baht, accounting for 90.6% of GDP, increasing from adjusting data to cover lenders. not new debt clarify household debt to GDP, which used to accelerate during the COVID-19 period, gradually decreased Accelerate the issuance of sustainable solutions to household debt problems.
Ms. Suwannee Jesadasak Assistant Governor Financial Institution Supervisory Division Bank of Thailand (BOT) revealed that BOT. Closely monitor the situation of household debt and push forward the implementation of long-term debt relief measures with creditors continuously every month. so that creditors can still help the debtor to recover The ratio of household debt to GDP gradually decreased due to the high acceleration during the COVID period. As of the first quarter of 2023, household debt was 16 trillion baht, accounting for 90.6% of GDP, increasing from data adjustments to cover more lenders. climb which is already in debt It’s not a newly born debt based on new information. Household debt in the fourth quarter of 2022 was at 91.4%, while the number of accounts and outstanding loans overdue more than 90 days due to the impact of COVID (debtor code 21) recently gradually decreased from the peak in October. 2022 from the acceleration of debt restructuring of Specialized Financial Institutions.
Going forward, NPL may gradually increase. from vulnerable groups with low incomes Or the income has not yet recovered, but will not see the NPL cliff and is a level that financial institutions can manage. This is in line with rating agencies’ views on the Thai banking sector that is still stable. In addition, the continued recovery of the Thai economy will improve debt serviceability. The vulnerable group debt that may deteriorate. Most of them are in low-income groups. have a high debt load and groups without regular income who have received assistance But still can’t come back to pay the debt For car loans classified as stage 2 (SM) that increased after the COVID period It doesn’t necessarily turn out to be all bad debt. It can be seen from the debtor’s behavior in the past. It can be seen that the car installments may be waived in order to use the money to pay for other obligations. Therefore, in general, the SM of auto loans is at a higher level than other types of retail loans, which the BOT Has instructed creditors, debtors to speed up debt restructuring negotiations. In addition, unsecured credit card and personal loan debtors who have bad debts overdue for more than 120 days can join the debt clinic. To restructure the debt so that the monthly burden is at a level that can be repaid.
The BOT will accelerate the issuance of sustainable solutions to household debt problems. which must be done in a comprehensive, legitimate, and in collaboration with all sectors which will cover the entire debt cycle Since the creation of new quality debt. taking care of existing debts, especially NPLs and chronic debts Including helping people access credit in the system by the way that the BOT. (1) Responsible Lending (RL) criteria requiring creditors to give credit responsibly and fairly throughout the debt cycle. since before the debt While in debt, there is a problem with debt sales. Debtors must receive appropriate, timely, quality and adequate assistance. (2) Risk-based pricing (RBP) mechanism to promote credit access in the system and help debtors pay risk-based interest rates and be treated fairly. The key principle is that low-risk debtors deserve lower interest rates. and increase access to credit in the system for high-risk borrowers; and (3) macroprudential policy measures. (MAPP) provides creditors with credit in line with their ability to pay off debt. and the debtor has enough money left to live Do not lead to over-debt, such as debt control, not too high compared to monthly income (DSR), which must be considered in accordance with the economic context. The BOT will clarify the details. At the end of July
“Effectively and Sustainably Resolving Household Debt Problems Requires cooperation from other sectors To extend the effect to another 30% of household debt that is not under the supervision of the BOT as well, for example, instilling knowledge and financial discipline in debtors. Responsible lending of all creditors development of a database used for evaluating and following up debts and resolving poverty, generating income, etc., ”said Ms. Suwannee.- Thai News Agency
Source: Thai News Agency