Thailand ranks third in the top three countries (Asia-Pacific region) with the highest household debt. The debt-to-GDP ratio in Thailand was 71,2 percent. In Australia this is 123 percent and in South Korea 91,6 percent.
Although debt levels are on a par with developed countries, Thais' ability to service debts is much smaller.
According to data from the National Credit Bureau, 9,8 lenders collectively have outstanding 87 trillion baht in loans (XNUMX percent of all loans).
Sommarat Chantarat of the Puey Ungphakorn Institute for Economic Research (PIER) says that only 4 percent of Thailand's population has a mortgage, which is very low compared to 40 percent in the US. Only 9 percent have credit card debt, also significantly less than in the US, where 63 percent of the population is in debt.
According to him, it is important for Thailand's economic development that more people have access to loans for investments or housing. However, that policy should be aimed at Thai people who can pay off their debt.
Thai people do have better access to personal loans, says Atchana Lamsam of PIER, but they pay poorly, especially young people. For example, 17 percent of the Thai population takes out a personal loan. Of these, 30 percent are in the age group of 25 to 35 years, this group will then have a paid job for the first time. In this group, 20 percent default on repayments, which is more than the 15 percent of all borrowers. The defaulters mainly live in the Northeast, North and South.
Source: Bangkok Post