BANGKOK, 4 September 2015 – The latest survey by the Center for Economic and Business Forecasting (CEBF) of the University of the Thai Chamber of Commerce has found that the country’s collective household debt has reached a 10-year high.
CEBF Director Thanawan Polvichai disclosed that around 80% of Thai families are in debt. An estimated 42% of households borrow money from both bank institutions and non-bank operators. The average Thai family incurs a debt of 250,000 baht (6,976 USD), a 13% jump from last year.
Most debtors seek loans to cope with daily expenses and to pay back previous loans from non-bank creditors. Those working in the agro-industry generally take out loans to compensate losses related to natural disasters.
To alleviate household debt, the CEBF urged the government to help low-income earners through nano-finance businesses, to wean debtors off from loan sharks. The government was also advised to expedite budget disbursement and state investments in different provinces to stimulate employment.
