Thailand's household debt rises to a worrying THB1.2 trillion
SME non-performing loans have seen a 20% year-on-year increase, NCB report reveals
Thailand's total household debt has reached 13.6 trillion baht as of the third quarter of 2024, according to a report released by the National Credit Bureau (NCB), highlighting the gravity of the situation.
Non-performing loans (NPLs) were estimated at 1.2 trillion baht in the same period.
While overall household debt growth has slowed, the report points to a worrying increase in bad debts of small and medium-sized enterprises (SMEs). SME loans have seen a 20% year-on-year increase in NPLs, a significant rise that could have broader economic implications.
The president and CEO of NCB, Surapol Opasatien, expressed concern about the growing debt burden, particularly for SMEs.
He noted that while measures have been implemented to address household debt, more attention needs to be given to supporting small businesses.
The NCB report also revealed that debt restructuring measures, such as debt consolidation and modification, have been employed to alleviate the financial strain on borrowers. However, the effectiveness of these measures in the long term remains to be seen.
As the Thai economy continues to recover from the pandemic, it is crucial to monitor debt levels and implement policies to promote sustainable financial growth. By addressing the challenges faced by SMEs and households, Thailand can mitigate the risks associated with rising debt and ensure a stronger economic future, Surapol said.
