New Committee Formed to Address Household Debt

BANGKOK (NNT) – The Fiscal Policy Office (FPO) has set up a committee to address the issue of household debt.

FPO Director-General Pornchai Thiraveja said the committee is chaired by Deputy Prime Minister and Energy Minister Supattanapong Punmeechaow.

The director-general noted that most debts stem from student loans; loans from teacher cooperatives; personal loans and credit cards; auto and motorbike loans; and informal debts as well as other general debts.

Related governmental units have already launched several programs to mitigate the problem, with a focus on helping debtors generate more income. These campaigns include loans that can be used to start businesses or invest in agricultural innovation to help reduce costs and increase yields.

Pornchai said the Ministry of Finance is now working to connect the State Welfare database with related agencies such as the Ministries of Labor, Interior, and Education, and the Bank of Thailand. The move is expected to enable units to collaborate more effectively.

The government is also promoting the importance of savings. The Ministry of Finance previously established the National Savings Fund and proposed to the Cabinet a bill for a national retirement fund to provide capital to those in need.

To address the issue of chronic household debt, the administration will educate people of all ages and professions on financial literacy and monetary management. The government will also carefully review its policy to better prevent citizens from falling into unnecessary debt.