The government intends to stimulate economic growth in order to address household debt problems sustainably, according to Finance Minister Pichai Chunhavajira.
Speaking at the ISAN NEXT seminar organised by Matichon newspaper, Mr Pichai said Thailand's household debt currently stands at 16 trillion baht, representing about 84% of the country's 19-trillion-baht GDP.
He said the present level of Thailand's household debt as a proportion of GDP is considered to be excessively high and should ideally stand at only 70%.
In addition to the problem of high household debt, there is also an issue regarding people's ability to repay debt. Of the 16 trillion baht in debt, 1 trillion baht is overdue and cannot be paid. In response to this situation, the government has introduced the "You Fight, We Help" programme for small borrowers with outstanding debts not exceeding one year, totalling around 800 billion baht.
The programme offers a three-year interest suspension period, and during this period the principal repayment will be reduced as follows: 50% of the original payment in the first year, 70% in the second year, and 90% in the third year.
If borrowers meet the programme's conditions, the interest suspended for three years would be waived. In total, the interest burden to be waived over the three years amounts to 240 billion baht, which would be shared equally between the government and financial institutions. Eligible borrowers must register by Feb 28, 2025.
Mr Pichai also said the Northeast is expected to benefit from the revival of China's economy. This is because China has determined trade routes, two of which will pass through the Northeast. One is the route from southern China, which passes through Vientiane in Laos, Nong Khai, Udon Thani, Khon Kaen, Nakhon Ratchasima and Bangkok, down to southern Thailand. The other is the East-West Corridor, which runs from China through Myanmar, then through Thailand's Northeast, extending to Laos and Vietnam. It is believed that both of these trade routes will bring prosperity to the Northeast.
In addition, he said the Northeast will benefit from a high-speed rail project starting in Bangkok, passing through Ayutthaya, Saraburi and Nakhon Ratchasima, which represents the project's first phase. It is set to be completed within the next four years. The second phase, connecting Nakhon Ratchasima with Khon Kaen, Udon Thani and Nong Khai, links up with Laos's high-speed rail system. It is expected to be completed within the next seven years.
