Thai central bank to aid vulnerable debtors as rates rise

A deputy governor of Thailand's central bank said on Tuesday that the country's central bank will assist vulnerable debtors in mitigating the effects of rising interest rates.

According to Deputy Central Bank Governor Ronadol Numnonda, assistance will be provided based on debtors' ability to service their debts.

He also stated that the central bank will issue guidelines to combat household debt later this month, including how to handle existing debt and offer new responsible lending.

According to Ronadol, some borrowers with a total debt of 12 billion baht ($357.46 million) received assistance under an earlier scheme.

Since August, the central bank has raised its policy rate four times and has suggested further increases.

Thailand's household debt is among the highest in Asia, accounting for 86.8 percent of GDP in the third quarter of 2022.

According to Governor Sethaput Suthiwartnarueput, the high level of household debt could stymie economic recovery and must be reduced to sustainable levels.