A street in Bangkok capital of Thailnd. (Photo: AFP/VNA)Bangkok (VNA) – Thailand’s Finance Ministry on March 7 announced that the Thaicabinet has approved a law to allow the Bank of Thailand to regulate thebusiness of leasing cars and motorcycles to strengthen consumer protection andtackle household debt.
Accordingto the ministry, transactions in the auto leasing sector accounted for 12.4% of the total household debt and were on an upward trend.
Thenew law will also ensure consumers are treated more fairly.
Thecabinet also allows the central bank to extend its soft loan programme forsmaller firms until early April 2024. The support measures will help businessoperators receive funds with appropriate interest rates during the ongoingeconomic recovery and in the future.
Thailand’scentral bank is devising new regulations to curb the household debt problemover the long term to reduce the ratio of household debt to GDP from 86.8% asof the end of 2021 to no more than 80% in the long term.
Overthe past 12 years, household debt has risen significantly in Thailand from59.3% in 2010 to 90.1% in 2021, mainly attributed to the impact of thepandemic.
Thebank expects to hold public hearings for new responsible lending regulations inthe second quarter of this year, with enforcement expected in the thirdquarter./.
