A street in Bangkok capital of Thailnd. (Photo: AFP/VNA) Bangkok (VNA) – Thailand’s Finance Ministry on March 7 announced that the Thai cabinet has approved a law to allow the Bank of Thailand to regulate the business of leasing cars and motorcycles to strengthen consumer protection and tackle household debt.
According to the ministry, transactions in the auto leasing sector accounted for 12.4% of the total household debt and were on an upward trend.
The new law will also ensure consumers are treated more fairly.
The cabinet also allows the central bank to extend its soft loan programme for smaller firms until early April 2024. The support measures will help business operators receive funds with appropriate interest rates during the ongoing economic recovery and in the future.
Thailand’s central bank is devising new regulations to curb the household debt problem over the long term to reduce the ratio of household debt to GDP from 86.8% as of the end of 2021 to no more than 80% in the long term.
Over the past 12 years, household debt has risen significantly in Thailand from 59.3% in 2010 to 90.1% in 2021, mainly attributed to the impact of the pandemic.
The bank expects to hold public hearings for new responsible lending regulations in the second quarter of this year, with enforcement expected in the third quarter./.
