“Do Not Politicize the Issue”
Paetongtarn emphasized that the proposal comes from someone with good intentions for the country and urged people not to turn it into a political issue. “We should not stand in the way of anything that benefits the nation,” she stated.
As she prepares to face a censure motion in the House next week, the opposition has been highlighting alleged external influences on government decisions. However, Paetongtarn clarified that the debt proposal remains under discussion with advisers and relevant ministers before being presented to the cabinet for further consideration.
A Solution for Household Debt?
Thaksin suggested the idea while campaigning for a mayoral candidate in Phitsanulok, stating that allowing private companies to take over household debt could provide debtors with a fresh financial start. He proposed that borrowers repay their new creditors under more manageable terms, helping them clear their credit records.
Finance Minister Pichai Chunhavajira acknowledged debt restructuring as a viable approach, including smaller payments, lower interest rates, or debt reductions. He also mentioned the potential implementation of a “good bank-bad bank” model, similar to that used during the 1997 financial crisis.
However, critics, including former Finance Minister Thirachai Phuvanatnaranubala, argue that Thaksin’s proposal does not address the root cause of the debt crisis, merely shifting obligations from banks to private firms.
With household debt reaching 16.3 trillion baht—equivalent to 89.6% of Thailand’s GDP—debate continues over the most effective solution to ease the financial burden on citizens.
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