Bad household debt in Thailand has risen by 25% since the end of 2022, reaching a record-high 1.23 trillion baht as of January this year, according to the National Credit Bureau (NCB).
Outstanding non-performing loans (NPLs) in the household sector are expected to rise again in the first quarter of this year, said Surapol Opasatien, the bureau’s chief executive.
At the end of 2022, NPLs totalled 980 billion baht, increasing to 1.05 trillion at the end of 2023 and 1.22 trillion at the end of 2024, according to data from the bureau.
Similarly, troubled debt restructuring (TDR) has also risen steadily, reaching 1.07 trillion baht as of January, continuing its upward trajectory since the fourth quarter of 2022.
TDR outstanding amounted to 780 billion baht at the end of 2022, rising to 1.04 trillion in 2023 and 1.06 trillion last year.
“TDR continued to rise due to debt restructuring programmes implemented by financial institutions,” said Mr Surapol. “The amount is expected to increase further in the first quarter of this year, in line with the recent ‘You Fight, We Help’ debt relief initiative.”
He said borrowers classified as NPLs because of the effects of the pandemic, referred to as NPL Account 21, should also be eligible for targeted debt relief measures. These borrowers had a strong repayment record, consistently making payments for at least 12 months before being impacted by the pandemic, said Mr Surapol.
“Given their strong repayment record, they should be rewarded with debt assistance under a targeted programme,” he said.
“For example, the programme should be available to small-scale borrowers with debts ranging from 100,000 to 300,000 baht.”
Former prime minister Thaksin Shinawatra recently suggested that the government set up a programme whereby bad debt would be purchased from banks, with debtors given more time to pay it off.
Finance Minister Pichai Chunhavajira subsequently said he favoured assistance for borrowers with loans of less than 100,000 baht, which account for 35% of total household debt.
According to NCB data, as of January 2025 NPL Account 21 comprised 2.2 million borrowers, accounting for 2.9 million loan accounts with a total outstanding balance of 201 billion baht.
Meanwhile, mortgage growth has been slowing, said Mr Surapol.
As of January, total outstanding consumer loans were worth 13.6 trillion baht, declining by 0.3% month-on-month and 0.5% year-on-year. Housing loans amounted to 5.12 trillion baht, down 0.3% month-on-month, but up 2.8% year-on-year.
Over the same period, auto loans totalled 2.39 trillion baht, contracting by 0.8% month-on-month and 8.8% year-on-year.
Credit card loans were 571 billion baht, decreasing by 1.7% month-on-month and 0.8% from a year earlier.
Personal loans amounted to 2.63 trillion baht, falling 0.2% month-on-month but rising 1.5% on the year.