BoT governor raises alarm over rising personal debts | Bangkok Post: business

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BoT governor raises alarm over rising personal debts

Published: 5 Dec 2012 at 00.00
Newspaper section: News

Bank of Thailand (BoT) governor Prasarn Trairatvorakul has expressed concern over the rising levels of personal loans and household debts.

The economy could be hurt if nothing is done to curb the trend, he said yesterday.

Speaking at a seminar on "Managing Risks and Rise to the Challenges of 2013," organised by Krung Thai Bank, Mr Prasarn said the BoT had been working with the Finance Ministry to monitor the level of private debt and prepare measures to control the problem.

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boons
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Discussion 4 : 05 Dec 2012 at 22.354
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This is more theater from the BoT. Thailand is in the middle of an enormous credit-fueled debt bubble as artificial growth becomes the tune of the day. The SET is at a 16-year high. Real estate is booming. Salaries are expected to rise 6% next year. The minimum wage is doubling. Meanwhile, global consumer demand is collapsing. Thailand's exports are down. Thailand's industries are preparing to move to cheaper ASEAN destinations. It's clear that the banking sector is engaged in a Greek-style "get rich before it all falls apart" strategy. If the BoT actually cared they would raise reserve ratios, force higher lending standards, etc.
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franklin
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Discussion 3 : 05 Dec 2012 at 14.343
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Indebtedness is slavery! The government will continue to encourage loans!
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GerBo
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Discussion 2 : 05 Dec 2012 at 14.232
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And what about the fact that the government pushes people into problems? I read last week that the first car tax scheme will bring many households in problems. Look for instance also to a car price list. At once you see the different kind of ways to pay. Really unbelievable. And what to think how people uses a credit card? Sorry BoT governor. Guess first "tick" the government on their fingers.

I always learned, I can only spend what I have in my wallet! but I guess I'm with my 30 of age already old-fashioned.
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Ian
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Discussion 1 : 05 Dec 2012 at 09.251
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And how do you control the illegal moneylenders? Every day I see them doing their rounds, poor Thais neither understand nor trust banks.
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