Government spokesman Chai Wacharonke on Monday said that the government's debt solution plan will bring 500 billion baht back to the economy if successful.
"If it is effective, the plan will return at least 500 billion baht to the national economy and allow some 5 million people to rebound in society and be productive," he said.
Mr Chai said the government's policy aims to resolve debt issues for those in the agricultural, business and civil society sectors.
Debt issues, including both formal and informal loans, have plagued Thai society for a long time, he said.
The government has devised plans to set clear guidelines with the integration of all agencies to deal with the problems with sustainable solutions, he said.
On Dec 12, Prime Minister Srettha Thavisin outlined his administration's plan to resolve universal household debts.
Mr Srettha said the plan would grant a debt moratorium to about 1.1 million debtors affected by the Covid-19 pandemic. Most people in this group borrowed money from the Government Savings Bank and the Bank for Agriculture and Agricultural Cooperatives.
The government will also adjust a debt restructuring plan for small and medium-sized enterprises (SMEs) that are indebted to state-run banks and grant them a debt moratorium for one year, Mr Srettha said.
Civil servants, including teachers, police officers and soldiers, will be assisted through the government's guidelines by reducing loan interest, gathering all debts to one bank to facilitate debt payment and adjusting or proper deduction of salaries for debt repayment, he said.
Those with irregular incomes will be offered a temporary debt moratorium, loan interest reductions or a lower rate of monthly debt payments. Farmers are already part of the government's three-year debt moratorium, aiding more than 1.5 million farmers, the PM said.
Those who have outstanding bad debts with state-run banks will be transferred to asset management companies, joint ventures of financial institutions and state agencies and will have their problems solved through a debt restructuring plan, Mr Srettha said.
Mr Chai said the government will take serious action to ensure all debtors receive proper loan interest and boost their debt management efficiency.