Prime Minister Srettha Thavisin has reported progress in the country’s comprehensive debt resolution efforts, stating that more than 57% of debt mediation cases have been successfully resolved, leading to a reduction in total debt by over 670 million baht. The announcement was made during a press conference held on Monday (Feb 12) at the Santimaitri Building, Government House, with key government and police officials in attendance.
The government had previously declared the resolution of public debt a national priority, launching a holistic approach to address both formal and informal debts. The approach involved the collaboration of various agencies, including the Ministry of Interior, the Royal Thai Police, and the Ministry of Finance, along with state financial institutions. These agencies were tasked with implementing a strategy aimed at conclusively addressing the debt issue within the current government’s tenure.
Since the commencement of the registration process on December 1, 2023, over 140,000 debtors have registered, representing a total debt of approximately 9.8 billion baht. Of these, 21,000 cases were fully documented and eligible for mediation, with 12,000 cases successfully mediated. This translates to a success rate of 57% and a substantial reduction in the overall debt burden.
The Prime Minister highlighted the collaborative efforts made in facilitating mediation between creditors and debtors and prosecuting cases of violent debt collection. Additionally, financial support has been provided to debtors who have successfully undergone mediation, with the aim of helping them develop their careers, increase their income, and avoid falling back into informal debt.
Despite the progress, challenges remain, particularly in ensuring creditor participation in the mediation process and reaching agreements that are satisfactory to both parties within the legal framework. The government has made it easier for the public to participate in the debt resolution process through “Debt Resolution Fairs” conducted in every province at least four times a month.
The Royal Thai Police have been actively cracking down on illegal informal debt practices, with two operations already conducted that resulted in over 1,300 arrests. (NNT)
