BANGKOK – The Bank of Thailand (BoT) has joined hands with the Thai Bankers Association to seek ways to lower the personal credit ceiling to remedy the problem of young citizens accruing high debt.
BoT Governor Weerathai Santipraphob revealed that on May 17 the bank will join other financial institutions to announce measures to tackle household debt after finding the rate rising rapidly and many citizens now buried in debt.
The central bank and its alliances will first work to teach financial discipline while also seeking to have credit providers be straight forward with their clients about the risks of debt.
Weerathai remarked that household debt is a major national problem and is an obstacle to equality in Thailand. He said it comprises many dimensions, from citizens themselves to financial institutions.
Initial information is that the central bank will bring down the ceiling for personal credit for citizens between the ages of 18 and 34. Presently, citizens can have debt 5 times their income but the allowance maybe brought down to 3 times. They also may have a limit imposes as to how many credit cards an individual can hold.