BANGKOK, 6 August 2014 – The Permanent Secretary of Finance has disclosed that household debt has decreased after the rice pledging scheme money was disbursed, allowing agriculturists to clear their debts.
Rangsan Sriworasart, the Permanent Secretary of Finance, said that the Bank of Thailand (BoT) had reported that household debt dropped from 82.3% of the national GDP in 2013 to 79.4% of the national GDP in 2014. Household debt is trending towards a further decrease since the rice pledging scheme money was disbursed to growers.
The average Thai household debt increased in 2011 due to repair expenses after the flood crisis, while the first car buyer program was unveiled in 2012, prompting the public to apply for loans. Additionally, agriculturists failed to receive the 92 billion baht owed to them by the rice pledging scheme, forcing them to take out loans.
At present, the situation has been alleviated, with first-time car buyers receiving their tax rebate money, and rice pledging scheme money being fully disbursed.
At the same time, the Permanent Secretary of Finance says that Thailand’s economy will grow by no less than 2% this year as consumption and spending by the public show signs of returning to normal.
