Thai government makes headway in battle against informal debts
The Thai government has reported progress in its ongoing battle against informal debts, stating that it has resolved the issues of 233 registered debtors. Prime Minister Srettha Thavisin personally observed the progress of a debt resolution model in Nan last Saturday.
Government spokesman Chai Wacharonke revealed that the Interior Ministry’s data indicates that 106,863 debtors have registered with the government to solve their informal debt problems. The combined informal debt value is reported to be 6.69 billion baht (US$ 193,324,743), spread across 77,525 informal loan lenders. The capital, Bangkok, had the highest number of registered debtors at 6,734, with their combined debt amounting to 566 million baht (US$ 16,356,024) and involving 5,749 lenders.
Conversely, Mae Hong Son had the lowest number of registered debtors, at 151. Their combined debt stands at 6.62 million baht (US$ 191,301), spread across 117 lenders. Chai highlighted that 1,445 debtors have entered the negotiation process, with 233 reaching an agreement with their lenders. The outcome has seen a significant drop in debt value, from 144 million baht (US$ 4,161,250) to 46.5 million baht (US$ 1,343,737), reported Bangkok Post.
Chai commented, “This is progress made so far in resolving informal debts. I urge remaining informal debtors to register with the government so we can help.”
The government’s ambition in managing this issue is to prevent nationwide debtors from paying a minimum of 100 billion baht (US$ 2,889,757,000) annually to loan sharks.
PM Srettha, during his visit to Nan last Saturday, underscored the urgency of the debt issue, calling on state agencies to address the problem that is negatively impacting the economy. As of his visit, 563 informal debtors in Nan have registered for the programme, their combined debt value is 33 million baht (US$ 953,620), spread across 518 lenders.
Thus far, 52 debtors are in the negotiation process, with four achieving a reduction in their debts. The majority of people, it was found, borrowed money for consumer products, investments, home renovations, tuition fees, and gambling.
