157 Thailand is gearing up to tackle its persistent problem of high household debt, which stands at a staggering US$452 billion. Prime Minister Srettha Thavisin announced plans to establish an asset management firm in the first quarter of this year to address this pressing issue. The country’s household debt situation is concerning, with ratios among the highest in the region. At 16.2 trillion baht, equivalent to 90.9% of GDP, as of September 2023, many lower-income families resort to illegal loan sharks due to difficulties obtaining bank loans. This perpetuates a cycle of debt-burdened by exorbitant interest rates. The proposed asset management firm, spearheaded by the Government Savings Bank, aims to alleviate persistent debts. While specific details were not disclosed, the firm is expected to adopt more flexible debt management policies to assist struggling borrowers. However, the road ahead remains challenging, with incomplete debtor registrations hindering progress. Since December, only a fraction of registered individuals have received assistance, highlighting the enormity of the task at hand. In tandem with efforts to address household debt, the government plans to implement a US$14 billion handout scheme to stimulate consumption. Despite concerns over its funding and fiscal responsibility, the government remains committed to revitalizing the economy through targeted stimulus measures. As Thailand navigates its economic recovery, addressing the household debt crisis is paramount. The establishment of the asset management firm represents a proactive step towards mitigating the adverse effects of debt burden on individuals and the broader economy. You Might Be Interested In A Comprehensive Evaluation of Franklin Resources Reveals Industry Challenges Oxygen Shifts Focus from Banking to Health in New Strategy Nvidia CEO Jensen Huang Sells $42 Million In Shares Markel Launches PI and Clarifies Intentions Australia’s Simplified Trade System is still a work in progress Thailand’s New Government Distributes Cash Benefits