BOT’s media briefing on addressing Thailand’s household debt problems
Media Briefing | 17 Jan 2024
Key takeaways from BOT’s media briefing on addressing Thailand’s household debt problems
BOT continues to give priority to addressing Thailand’s household debt problems. This is reflected in the BOT’s implementation of debt assistance measures, which has evolved to fit the prevailing context at each given time. Measures implemented during the COVID-19 pandemic were broad-based as BOT intended to assist a wide range of debtors affected by the crisis. The focus had since shifted towards more targeted measures after economic conditions improved. Key principle underpinning the BOT’s policy actions - is to provide comprehensive and fair solutions to the debtors. In the third quarter of 2023, BOT announced a set of measures to sustainably alleviate household debt problems, some of which have already been in effect since the beginning of 2024, building on existing measures aimed at assisting vulnerable debtors. BOT also issues new guidelines on Responsible Lending, which is a step up from the prior request for creditors’ cooperations to assist debtors. The guidelines on Responsible Lending require creditors to lend in a responsible and fair manner, offer debt restructuring solutions to debtors in distress, help to find solutions for persistent debt to be fully repaid and protect debtors’ rights, all of which are crucial to addressing Thailand’s household debt problems in a more sustainable manner. The key takeaways are as follow: