Pichai Chunhavajira, Deputy Prime Minister and Minister of Finance, revealed after the recent Economic Cabinet meeting that a key proposal is for the Bank of Thailand (BOT) to collaborate with financial institutions to reduce the minimum monthly credit card payment from 8% to 5%, providing relief to debtors during this economic slump.
Previously, the minimum payment was temporarily reduced to 5% during the COVID-19 pandemic but was raised to 8% at the beginning of 2024, with plans to return to the standard 10% by 2025.
Currently, there are approximately 24 million credit cards in circulation, with over 1.1 million cards having overdue balances exceeding 90 days, classified as non-performing loans (NPL). An additional 200,000 cards are at risk of becoming NPLs. The high-interest rates on these debts have led to initiatives like the Debt Clinic by Sukhumvit Asset Management Company (SAM) to halt further debt accumulation and extend repayment periods.
Additionally, there is an ongoing effort to restructure automotive debts, focusing on pickup trucks and motorcycles, essential for many people’s livelihoods. Discussions with relevant stakeholders and finance companies are underway, separating NPLs from repossessed vehicles and new loans. The proposed solutions will be reported in the next Economic Cabinet meeting. (NNT)
