Prime Minister Srettha Thavisin has disclosed substantial advancements in the country’s comprehensive debt resolution initiatives, indicating that more than 57% of debt mediation cases have achieved successful outcomes, leading to a notable reduction in total debt by over 670 million baht. The update was provided during a press conference held yesterday (Feb 12) at the Santimaitri Building, Government House, with the presence of key government and police officials.
The government, recognizing the urgency of addressing public debt, had previously designated debt resolution as a national priority, initiating a holistic approach to tackle both formal and informal debts. This coordinated effort involved various agencies such as the Ministry of Interior, the Royal Thai Police, and the Ministry of Finance, alongside state financial institutions. Their joint mission was to execute a strategy aimed at conclusively resolving the debt issue within the current government’s term.
Since the registration process commenced on December 1, 2023, over 140,000 debtors have enlisted, collectively representing a debt load of approximately 9.8 billion baht. Among these registrants, 21,000 cases were fully documented and deemed eligible for mediation, with 12,000 cases successfully mediated. This achievement reflects a commendable success rate of 57%, contributing significantly to alleviating the overall debt burden.
The Prime Minister underscored the collaborative endeavors undertaken to facilitate mediation between creditors and debtors, alongside efforts to prosecute cases involving violent debt collection practices. Furthermore, financial assistance has been extended to debtors who have completed successful mediation, aimed at supporting their career development, enhancing their income, and preventing re-entry into informal debt cycles.
Despite these strides, challenges persist, particularly in ensuring creditor engagement in the mediation process and reaching mutually acceptable agreements within the confines of the law. To enhance public participation, the government has instituted “Debt Resolution Fairs” conducted in every province at least four times a month.
Meanwhile, the Royal Thai Police have been actively combatting illegal informal debt practices through targeted operations, resulting in over 1,300 arrests across two crackdowns. These initiatives underscore the government’s commitment to eradicating unlawful debt practices and fostering a more equitable financial landscape for all citizens.
