Paetongtarn makes the recommendation that private companies should get and maintain household debts in “don’t politicise it.”
PUBLISHED: 18 Mar 2025 at 20: 20
On Tuesday, former prime minister Thaksin Shinawatra‘s suggestion to address the issue of household debt was defended by prime minister Paetongtarn Shinawatra. The plan would allow private companies to purchase and maintain bill from the banking system.
” The concept to fix the home debt trouble comes from a person who has excellent intentions for the state,” the author says. Don’t strive to politicize the situation, the top urged.
Next year, Ms. Paetongtarn will be subject to a censure activity in the House. The opposition aims to demonstrate how the effect of a certain stranger can be seen in many decisions made by her government.
She claimed that she had to talk with her experts and the relevant ministers about the loan issue. She noted that it would also need to be discussed with the government.
” There are still many steps to be taken,” she said. This is not an attempt to overthrow [the government ] or exert a lot of control over it. It is merely an opinion from a knowledgeable source,” she said. We will not have in for anything that will help the nation.
Thaksin presented the idea while supporting a candidate for mayor of Phitsanulok state in the northeast on Monday.
The Pheu Thai Party’s de facto leader claimed that the nation has long been plagued by family debts.
He suggested that lenders may be allowed to pay off the debts owed to their new debts slowly, and that private companies may be allowed to purchase all debt owed by individuals to commercial lenders.
People would not be required to pay the full amount so they could have the chance to begin fresh life. Support them remove their titles from the blacklist of credit bureau employees, he pleaded.
If private companies are permitted to get their bills,” no federal funding may be required to obtain this.”
Finance Minister Pichai Chunhavajira stated on Tuesday that debt reform is one way to make it simpler for debt to pay off their debts through smaller monthly payments, lower interest rates, or a drop in the amount the debtor owes.
He claimed that there is a” good bank-bad bank” model, which is a different approach to dealing with numerous bad loans brought on by the financial crisis of 1997. A troubled lender creates a “bad bank” to individual bad debts from poor goods from non-performing loans.
It resembles an property management firm, according to the company. Banks, who are the creditors, may be asked to cooperate this time, though. Mr. Pichai stated. ” Some secret companies may also be fascinated. The government may even think about potential assistance.
This is just an thought, though. He continued, adding that he would bring up Thaksin’s idea with the Thai Bankers ‘ Association,” we have to gather feedback from all parties involved.”
Former finance minister Thirachai Phuvanatnaranubala criticized Thaksin’s plan, saying it does not address the root cause of the issue. He stated in a Twitter post that the payments are simply moved from one location to another.
According to Kasikorn Research Centre data, household debt amounted to 16.3 trillion baht, or 89.6 % of GDP, at the end of the year.
Each private company may have about 500 billion baht if private companies were permitted to get the debts, according to previous election commissioner Somchai Srisutthiyakorn, who said at least 32 companies would need to be able to do so.