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  1. #1
    Thailand Expat misskit's Avatar
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    Thailandís informal debt hits 10-year low

    BANGKOK, 13th October 2017 (NNT) - A study has found that Thailandís informal debt has hit the lowest level in 10 years, thanks to the governmentís efforts to solve the problem.


    President of the University of the Thai Chamber of Commerce, Associate Professor Sauwanee Thairungroj, said on Thursday that a survey of the debt situation among Thai households in 2017 has found that 91 percent of the respondents still have a debt burden ó most of which was incurred in general spending.


    The study also found the second cause of household debt was the purchase of assets, such as vehicles and houses.


    Associate Professor Sauwanee added that Thai households currently have average debt of 299,266 baht, up 0.4 percent from last year ó the lowest rate of increase in 10 years.


    She added that 26.4 percent of the outstanding debt came from informal borrowing and this indicated the smallest proportion in 10 years as well.


    Associate Professor Sauwanee expects the number of informal debtors will fall drastically as a result of the governmentís efforts to solve the problem and the peopleís heightened spending awareness.


    http://nwnt.prd.go.th/CenterWeb/News...C6010120010212

  2. #2
    Fresh Seaman CaptainNemo's Avatar
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    Quote Originally Posted by misskit View Post
    the lowest rate of increase in 10 years.
    This seems a very misleading story...

    Surely Thailand's personal debt is actually going higher and higher?!

    Thailand tightens credit-card rules to battle high household debt

    * Curbs credit line limits for credit cards, personal loans
    * Cuts maximum credit card interest rate to 18 pct from 20 pct
    * High household debt Ďmay affect the economyí - c.bank deputy gov (Adds details, quotes)
    By Orathai Sriring and Kitiphong Thaichareon
    BANGKOK, July 26 (Reuters) - Thailandís central bank on Wednesday tightened controls on credit cards and unsecured personal loans, a move that should contain high household debt levels and could cut domestic consumption.


    The measures, effective Sept. 1, come at a time of concern about overspending by citizens and rising bad loans.
    The rule-changes mean credit-card holders can no longer automatically get credit limits of five times their monthly incomes. From Sept. 1, only individuals earning at least 50,000 baht ($1,492) a month can get a maximum spending limit of five times their monthly salary for credit cards.

    At the end of March, Thailandís household debts were 78.6 percent of gross domestic product, among the highest in Asia, although that eased slightly from 79.8 percent at end-2016.
    ďThailandís household debt has been high and may affect households and the economy in the long term,Ē Bank of Thailand Deputy Governor Ruchukorn Siriyodhin told a news conference.
    High debt levels have already had an economic impact. They are one reason the central bank has not cut its benchmark interest rate for more than two years to try to lift Thailandís sluggish growth pace, as such a move could raise household debt levels.
    Credit card loans that became bad credits stood at 3.8 percent of all such loans at end-March, while those of personal loans were 2.9 percent.
    ASSET QUALITY PRESSURE

    On Wednesday, Fitch Ratings said Thai banks continued to face asset quality pressure stemming from vulnerabilities in small-and medium-sized enterprise and unsecured retail loan sectors.
    Currently, there are 6.7 million people holding 19.8 million credit cards, Ruchukorn said.
    The new rules cut the maximum credit card interest rate to 18 percent from 20 percent, she said.
    New credit card applicants with a monthly salary below 30,000 baht can have a credit line of up to 1.5 times their income, and those with less than 50,000 baht income will get up to three times.
    The credit line for new unsecured personal loan applicants with monthly income below 30,000 baht will be limited to 1.5 times their income, and they will be limited to three accounts.
    Shares in market leader Krungthai Card, Thailandís biggest credit-card issuer and a unit of Krung Thai Bank fell 5 percent on the credit-card changes. The banking index was off 0.11 percent.
    Thai people started accumulating debts from a younger age, over a longer period, and of a larger amount, BOT Governor Veerathai Santiprabhob said last month, adding the high debt levels were a challenge for households and policymakers. ($1 = 33.51 baht)

    https://www.reuters.com/article/thai...-idUSL3N1KH1YJ

  3. #3
    ความรู้ลึกลับ HuangLao's Avatar
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    Informal debt?

  4. #4
    Days Work Done! Norton's Avatar
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    Quote Originally Posted by CaptainNemo View Post
    This seems a very misleading story...
    It is. Informal debt is debts that have been renegotiated with a lender. Called Chapter 11 in US.
    Essentially bankruptcy.

  5. #5
    I am in Jail
    stroller's Avatar
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    Quote Originally Posted by CaptainNemo View Post
    This seems a very misleading story...

    Surely Thailand's personal debt is actually going higher and higher?!
    Correct, it's 0.4 % higher than last year, hardly a "10-year low".

    Same bullshit one reads about economies: a lowered increase still means growth.
    Nobody questions the growth mantra and how economies are supposed to grow for ever to remain 'healthy'.

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