The government has set its sights on resolving household debt for eight specific groups, as it makes tackling debt issues one of its primary missions for 2022.
Prime Minister Gen Prayut Chan-o-cha has kicked off the year’s debt campaign by instructing relevant agencies to follow up on the student loan program that will be presented to Parliament for consideration.
According to a specialized subcommittee working under the Ministry of Finance, the Prime Minister has ordered that issues covering debts related to eight groups be addressed within this year. These include:
– Revising issues from the student loan program to provide more options for students to pay their loans.
– Considering financial mediation and restructuring as a national agenda via the Bank of Thailand and Thai financial institutions.
– Resolving automobile and motorcycle debt, such as by setting a rate limit for follow-up fees so clients can avoid paying unnecessary fees, etc.
– Fixing debts for public officials, especially for public teachers and police, such as by suspending the use of assets or future salary to pay debts.
– Reconsidering the structure of interest rates and fees and rolling out measures to protect the rights of clients. The Ministry of Finance has reduced the interest rate for PICO Finance clients from 36% to 33%, while debtors with guaranteed assets will be provided additional long-term assistance and new refinance measures from the BoT.
– Resolving credit card debt and bad loans by utilizing the BoT’s Debt Clinic as a platform to address these concerns.
– Providing better financial access for individuals and SMEs via a soft loan program and the BoT’s recovery program.
– Reorganizing protocols in the judicial process and establishing the Thai Business Mediation Center (TBMC)
The Prime Minister noted that the government will implement further steps to help people pay their loans and alleviate household debt, calling it one of the nation’s most fundamental challenges. (NNT)
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