As of the first quarter of this year, household debt stood at 16 trillion baht, accounting for 90.6% of the country’s gross domestic product (GDP).
The BOT reported that the number of accounts and the total amount of overdue debts exceeding 90 days resulting from the impact of Covid-19 have gradually decreased from their peak in October 2021 due to the acceleration of specialised financial institution debt restructuring.
Sethaput said the trend of household debt indicates a gradual rise in non-performing loans (NPLs), but he believed this would not cause an NPL cliff, a situation where a lot of debt defaults occur in a very short time, forming a ”cliff” of non-performing loans.
“Financial measures and long-term debt restructuring will help prevent borrowers from slipping into NPLs too fast,” he said.
He added that special-mention loans (those overdue for more than one…
