Thai state-run banks must lower interest rates to 0% to ease critical household debt

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Mr. Arkhom recently asked state-run banks to consider lowering interest rates to 0%, until the end of this year, as part of the government’s efforts to curb household debt, which has worsened because of the outbreak.

Finance Minister Arkhom Termpittayapaisith said the ministry plans to propose measures to curb household debt to the Cabinet this week.

Thailand’s Fiscal Policy Office Director-General Kulaya Tantitemit said the measures cover those previously implemented by state-run financial institutions and new ones to mitigate the hardships faced by individuals during the pandemic.



The Finance Ministry recently asked state-run banks to consider lowering interest rates to 0%, until the end of this year, as part of the government’s efforts to curb household debt, which has worsened because of the outbreak. State banks were asked to consider how much they can help affected businesses and to send their conclusions to the ministry.

Meanwhile, state-owned Government Savings Bank (GSB) president Vitai Ratanakorn said the bank wants to provide loans to increase customer liquidity and plans to suspend principal and interest payments for individual clients. The bank has completed suspensions for 700,000 customers so far. (NNT)