On February 23, 2022, citizens are seen availing of financial services at the Government Savings Bank hub. Amid challenging times, the government of Thailand has established a clear goal to reduce household debt to below 80% of the gross domestic product (GDP) by providing various debt resolution mechanisms to aid individuals in financial distress.
This announcement was made by deputy government spokeswoman, Rudklao Suwankiri, on a Friday. As per the Bank of Thailand’s records, the household debt for the first quarter amounted to a whopping 16 trillion baht, which is a concerning 90.6% of the GDP.
The Government Savings Bank (GSB), on the auspicious occasion of Navamindra Maharaj Day, commenced a series of options for individuals that face complications in debt reimbursement and to those whose debts have been labeled as non-performing loans (NPLs). This initiative, introduced by Ms. Rudklao, is an integral segment of the government’s financial growth policy.
The key motive of the policy is to lend a helping hand to debtors in solving their financial issues, bringing their living costs down, and providing them with the tools and guidance needed to increase their income. The initiatives, intricated with a humanistic approach, are expected to overall improve citizen’s financial health.
From the present day until the 30th of December, GSB has extended an offer to the debtors to suspend capital repayment. They will be obligated to continue paying only the interest at a rate varying from 25% to 100% of the typical monthly payment, as stated by Ms. Rudklao.
More significantly, individuals whose financial obligations were classified as NPLs before the 30th of December will be exempted from bankruptcy lawsuits and asset seizures. This exemption applies if they consent to repay their debts at reduced interest rates. With these measures in place, the government hopes to alleviate the financial strain on its citizens and boost personal savings and economic growth in the country.
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