A committee has been formed by the Fiscal Policy Office (FPO) to address the issue of Thai household debt.
The group is chaired by Deputy Prime Minister and Energy Minister Supattanapong Punmeechaow, according to FPO Director General Pornchai Thiraveja. He added that the majority of debts are from school loans, teacher cooperative loans, personal loans and credit cards, car and motorcycle loans, informal debts and other general debts.
The relevant government agencies have already launched numerous programs to address the problem, with an emphasis on helping debtors increase their income. The idea is to have loans that can be used to start businesses or invest in agricultural innovation to reduce costs and increase yields.
According to Pornchai, the Ministry of Finance is currently trying to integrate the government’s welfare database with other agencies such as the Ministries of Labor, Interior and Education, as well as with the Bank of Thailand. This program is expected to improve the effectiveness of inter-agency collaboration.
The government is also emphasizing the importance of setting aside money. The Ministry of Finance has already established the National Savings Fund and submitted a proposal to the Cabinet for a national pension fund to provide funds for those in need.
To combat chronic household debt, the administration will teach financial literacy and money management to people of all ages and professions. It will also conduct a thorough evaluation of its policy to better prevent citizens from getting into unnecessary debt.