Household debt at 80% of Thailand’s GDP

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Thailand debtHousehold debt in Thailand rose to 80.1 per cent of the country’s GDP in the third quarter of 2013, boosted mainly by the government’s tax refund scheme for first-time car buyers, teh Bangkok Post reported.

“This is not worrisome, as people may seek more loans when the economy is poor. A marginal run-up in debt is normal amid an economic slowdown,” said Bank of Thailand spokeswoman Roong Mallikamas.

She added that lenders are being more prudent in extending loans, while debtors are more cautious in accumulating debt. At the end of the second quarter of 2013, the country’s household debt accounted for 79.2 per cent of GDP.

With this figure, Thailand is among the countries in Asia with the highest public debt, but still behind South Korea and Malaysia.

Roong said while the central bank does not want to see higher unsecured loans including credit cards and personal loans, their growth rate is not significant and has been slowing to 10 per cent from 30 per cent in recent years.

Commercial banks’ non-performing loans (NPLs) at the end of November 2013 rose slightly to 2.3 per cent of outstanding loans from 2.2 per cent in October, propelled largely by auto loans which rose to 1.9 per cent of total auto loans in November 2013 from 1.8 per cent in the previous month.

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Reading Time: 1 minute

Household debt in Thailand rose to 80.1 per cent of the country’s GDP in the third quarter of 2013, boosted mainly by the government’s tax refund scheme for first-time car buyers, teh Bangkok Post reported.

Reading Time: 1 minute

Thailand debtHousehold debt in Thailand rose to 80.1 per cent of the country’s GDP in the third quarter of 2013, boosted mainly by the government’s tax refund scheme for first-time car buyers, teh Bangkok Post reported.

“This is not worrisome, as people may seek more loans when the economy is poor. A marginal run-up in debt is normal amid an economic slowdown,” said Bank of Thailand spokeswoman Roong Mallikamas.

She added that lenders are being more prudent in extending loans, while debtors are more cautious in accumulating debt. At the end of the second quarter of 2013, the country’s household debt accounted for 79.2 per cent of GDP.

With this figure, Thailand is among the countries in Asia with the highest public debt, but still behind South Korea and Malaysia.

Roong said while the central bank does not want to see higher unsecured loans including credit cards and personal loans, their growth rate is not significant and has been slowing to 10 per cent from 30 per cent in recent years.

Commercial banks’ non-performing loans (NPLs) at the end of November 2013 rose slightly to 2.3 per cent of outstanding loans from 2.2 per cent in October, propelled largely by auto loans which rose to 1.9 per cent of total auto loans in November 2013 from 1.8 per cent in the previous month.

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