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Financials

High Thai household debt a major problem for economy -c.bank chief

BANGKOK, May 7 (Reuters) - Thailand’s high household debt remains a major problem for its economy, the central bank governor said on Tuesday

Banks should focus on borrowers’ debt servicing, rather than collateral, Veerathai Santiprabhob told reporters after signing a memorandum of understanding with banks on a “debt clinic” programme aimed at tackling household debt problems.

Comparing to countries with similar incomes, Thailand’s debt-to-gross domestic product ratio is the highest, he said.

The level was 78.6 percent at the end of 2018, central bank data showed.

High debt has been a factor thwarting interest rate cuts. The central bank is expected to hold the key rate unchanged on Wednesday. (Reporting by Kitiphong Thaichareon; Writing by Orathai Sriring; Editing by Richard Borsuk)

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