Household debts have soared to the equivalent of 83.8% of the gross domestic product due to the novel coronavirus and the Bank of Thailand or BOT may have to introduce more monetary measures, according to its governor.
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BOT governor Sethaput Suthiwartnarueput said that debts were increasing with one-third of Thai people and that slowed down consumption and economic growth.
Thai people were quickly indebted and remained so for a long time, he said.
According to the BOT governor, household debts amounted to 13.58 trillion baht, equivalent to 83.8% of GDP, in the second quarter of this year, up from 13.49 trillion baht or 80% of GDP at the end of last year.
“COVID-19 further weakens the financial status of Thai people due to their reduced working hours and layoffs. Household debts thus rose to 83.8% of GDP in the second quarter of 2020 and are rising,” Mr Sethaput said.
The Bank of Thailand and financial institutions would work out assistance for debtors but it would not be across-the-board, he said.
The BOT governor expected the economy would return to its pre-COVID state in the third quarter of 2022. Before that, the BOT would introduce more monetary measures to stimulate the economy, he said. (TNA)