(Adds details, link to directional paper)
BANGKOK, Feb 14 (Reuters) - Thailand's central bank said
it wants to see household debt levels below 80% of gross
domestic product (GDP) to help reduce economic and financial
risks, an official said on Tuesday.
But measures introduced so far and a recovery in the economy
might not be enough to bring the debt level down below 80% of
GDP, Assistant Governor Suwannee Jatsadasak told a media
briefing.
Thailand's household debt stood at 86.8% of GDP in the third
quarter of 2022, among Asia's highest.
Given the current economic situation, inflation and interest
rates, "we think that by 2027, if nothing is done, household
debt will be 84% of GDP," Suwannee said.
A debt level higher than 80% of GDP could be a drag on
long-term economic growth and pose risks to the country's
financial stability, she said.
The Bank of Thailand (BOT) on Tuesday issued a directional
paper on sustainable solutions to the country's debt overhang
problems, including over how to handle existing debt and to
offer responsible lending.
Responsible lending rules should be introduced in the
third quarter of this year after seeking opinions from relevant
parties in the second quarter, BOT director Oramone Chantapant
said.
In the second quarter, the BOT expects to issue a
consultation paper over how to allow retail lenders to set
interest rates based on debtors' risk profiles, she said, adding
such a rule should come into effect late this year.
However, interest rate ceilings have not been removed,
Oramone said.
(Reporting by Orathai Sriring, Kitiphong Thaichareon and
Satawasin Staporncharnchai
Editing by Ed Davies)
