In a bid to tackle the pressing issue of mounting debt among Thai civil servants, Prime Minister Srettha Thavisin has pledged to take decisive action. With nearly three million civil servants affected by the crisis, the government’s focus is on implementing measures to reduce interest rates, thereby alleviating the financial burden faced by many.
Following a recent meeting with 11 state agency chiefs dedicated to addressing civil servant debt issues, PM Srettha highlighted the progress made in the past two months. He underscored the importance of tackling the situation promptly, warning that failure to do so could escalate into a national crisis.
During discussions, state agency heads petitioned financial institutions to lower interest rates, aiming to ease the debt load and make repayments more manageable for borrowers. However, PM Srettha noted the Bank of Thailand’s unchanged stance on the matter.
Furthermore, the Prime Minister urged the prompt involvement of the Cooperative Promotion Department (CPD) in the government’s debt relief efforts. Many civil servants and state employees have amassed significant debts to their organizations’ cooperatives, necessitating urgent intervention.
In addition to addressing interest rates, PM Srettha intends to engage in talks with the Student Loan Fund (SLF) management regarding the reduction of interest rates for defaulting borrowers, who currently face a substantial annual rate of 18%.
Deputy Police Chief Kittirat Phanphet, also Deputy Chair of the Government Committee on People’s Debts, revealed staggering statistics at the meeting. Of the 3.1 million civil servants, approximately 2.8 million collectively owe over 3 trillion baht to their organizations’ cooperatives.
Despite ongoing repayments, many debtors struggle to meet their living expenses, highlighting the urgent need for assistance. To address this challenge effectively, Kittirat suggested potential amendments to relevant laws to facilitate debt negotiation and settlement.
Defense Permanent Secretary Sanitchanok Sangkhachan shared that the ministry has implemented various measures to support personnel facing financial hardships, as reported by Bangkok Post. The growing debt crisis among civil servants has become a national priority, necessitating immediate and robust solutions.
