Rising household debt and non-performing loans (NPLs) are going to hurt listed companies in leasing, hire-purchase and finance because they are drag on the economy and lower consumer purchasing power, says an analyst.
Jitipol Puksamatanan, head of macro and wealth research at CGS-CIMB Securities, said Thai household debt has grown over the years, spurred by government policies such as the first car buyer and first home schemes.
“By offering consumer incentives, this led to a long-term problem worsening household debt, with many loans susceptible to becoming NPLs. This problem may affect purchasing power and none of the political parties have introduced clear policies…
