Thai central bank aims to cut household debt to 80% of GDP

23 Sept 04:51 Key points summarised by AI

The Bank of Thailand (BoT) targets reducing household debt from 90.7% to 80% of GDP, addressing increases due to recent crises like COVID-19.
A 'responsible lending' measure, effective January, mandates financial institutions to consider a borrower's existing debt before issuing new loans.
Starting April, the BoT will tackle 'chronic indebtedness' by enabling debtors to refinance personal loans at a maximum 15% interest, aiming for full repayment within five years.
Another strategy, 'risk-based pricing (RBP),' will facilitate access to new funding with lower interest rates, helping debtors settle older, higher-interest debts.

New home loan scheme aims to boost property sector with Bt125 billion

Yesterday 11:38 Key points summarised by AI

The Cabinet approved a new Bt50-billion 'A House for Each PLUS' home loan scheme from the Government Housing Bank, offering up to Bt3 million with 40-year repayment terms for low- and middle-income earners.
This initiative aims to significantly boost the property sector and national economy, projecting to generate Bt125 billion in economic activity and create jobs.