BANGKOK, 22 July 2013 The Bank of Thailand (BoT) has reported that household debt in Thailand has increased but is confident that it will not pose a threat to the Thai economy.
According to BoT Governor Prasarn Trairaitvorakul, the household debt has now risen to 80% from the previously recorded 78%. He, however, said the increase would not lead to economic crisis like in the U.S.
According to Mr. Prasarn, he is confident in the ability of the Thai households to service debt, given the ratio between the 1-month overdue payment and the amount of credit extended remains low, while the household liquidity has improved somewhat.
He further added that the rising household debt will lower consumer spending especially for low income earners. He said the BoT will continue to monitor the situation.
