The Cabinet has approved a new law that would empower the central bank to supervise the fast booming sector of leasing vehicles and motorbikes. The move attempts to bolster consumer safeguards and address the nation’s increasing family debt.
With the vehicle leasing industry highlighted as a key contributor to household debt, accounting for 12.4% of overall debt and indicating a rising trend, the Ministry of Finance stated that the new law will give better transparency and ensure equitable treatment for customers.
In addition to the new law, the Cabinet has extended the central bank’s soft lending program for small enterprises until early April 2024. This extension is aimed to assist company operators in receiving funding with acceptable interest rates during the ongoing economic recovery and beyond.
The assistance measures are likely to give much-needed relief to small enterprises in Thailand, which have been heavily struck by the global epidemic. With the new restrictions in place, the government intends to build a more stable and sustainable economy that benefits both consumers and companies.