Thai central bank to help vulnerable debtors as rates rise

BANGKOK (Reuters) – Thailands central bank will support vulnerable debtors from the impacts of rising interest rates, a deputy governor said on Tuesday.

There will be assistance in line with debtors debt servicing ability, Deputy Central Bank Governor Ronadol Numnonda told a news conference.

Later this month, the central bank will also issue guidelines to tackle household debt, including handling existing debt and offering new responsible lending, he said.

Some borrowers with combined debt of 12 billion baht ($357.46 million) had received support under a scheme introduced earlier, Ronadol said.

The central bank has raised its policy rate four times since August and suggested further increases.

Thailand‘s household debt is among Asia’s highest, equivalent to 86.8% of gross domestic product (GDP) in the third quarter of 2022.

The high level of household debt could disrupt economic recovery and needs to be brought down to sustainable levels, according to Governor Sethaput Suthiwartnarueput.

($1 = 33.5700 baht)