Thailand: household loan rate third highest in Asia – 26 Jun 2017

  • The household debt ratio in Thailand was the third largest in Asia in the 3Q16, according a Bank of Thailand unit.
  • The Puey Ungphakorn Institute for Economic Research found Thailand’s household debt was at 71.2% of gross domestic product while the ratio was 123% in Australia and 91.6% in South Korea.
  • One-third of all 69 million Thais borrowed from formal lenders. The average per-capita debt was THB150,000.
  • The study also found that Thais are becoming indebted at a younger age and half of new workers are indebted. Young workers were the largest non-performing loan group with one out of five on 19.3 million borrowers aged 29 and below defaulting on their loans.
  • Young workers becoming indebted and defaulting was worrisome as overall financial stability could be affected, the study pointed out.

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