In a bid to ease the burden on people, Prime Minister Prayut Chan-o-cha urged the Cabinet on Tuesday to come up with measures to ease debt problems both in the short and long term
He said many borrowers need help such as students, guarantors, teachers, government officials with car and motorcycle loans, credit cards and personal loans, etc.
Prayut said short-term measures to be launched within six months will include a reduction in interest burden and debt restructuring. The Bank of Thailand will also be asked to review the interest ceiling and come up with guidelines.
“We will also consider mediating to stop legal action against borrowers, will launch soft loans to help small and medium-sized enterprises and increase the number of pawnshops to take care of low-income people,” he said.
In the long term, he said, the government will reduce the interest rate, launch measures to reduce taxes on households and public transport, as well as set up agencies to solve issues related to granting loans..
He added that the Cabinet has, so far, agreed to cut down social security contributions to 60 per cent for six months in a bid to ease people’s burden and boost purchasing power.
“This will not affect their benefits after retirement,” he added.
Household debts in Thailand stood at 14 trillion baht in 2020.