Thai Central Bank Unveils Measures to Tackle High Household Debt
Thailand’s central bank announced a slew of relief measures for borrowers struggling to repay home loans and credit card dues, stepping up efforts to tackle the highest household indebtedness in Southeast Asia.
The minimum repayment rate of 8% for credit-card users, which the central bank earlier proposed should be increased to 10% from Jan. 1., will be extended until the end of next year. Debtors unable to meet the minimum repayment obligation can seek to restructure their obligations to term loans to be paid back in instalments, Bank of Thailand said in a statement late Friday.
The central bank will continue to promote consolidation of lenders’ home and retail debt by relaxing the loan-to-value ratio norms to reduce the overall burden and bring down the interest rate. For borrowers with the so-called persistent debt, BOT has extended the settlement period to seven years from five under its responsible and fair lending practices.
Thomas Kutty Abraham
