The Bank of Thailand has issued a new paper called “Sustainable Solutions to Thailand’s Structural Debt Overhang Problems” to provide analysis on household debt issues in Thailand and its approach to resolving them. The paper emphasizes the need for comprehensive, principle-based solutions that address debt problems at all stages of indebtedness. The BOT has set guidelines for dealing with debt overhang problems, including ensuring long-term debt restructuring for NPLs, guiding debtors to ensure debt full repayment is in sight for persistent debts, issuing a new guideline on responsible lending and promoting the use of alternative credit data for other debts. The BOT will collaborate with all stakeholders to foster household well-being, reduce economic and financial stability risks, and strengthen the financial sector.
