Household Deleveraging: International Practices: Thailand

Household sector over-indebtedness has been a critical issue in Thailand in recent years. This paper starts with a summary of the deleveraging measures implemented so far in Thailand, and then presents four country case studies (Brazil, Hungary, Korea, and Malaysia), with a focus on the measures introduced by the authorities to address high levels of unsecured loans as they are more relevant to Thailand’s current risk profile. The case studies are followed by a brief overview of other relevant international experiences in facilitating debt rehabilitation, forgiveness, and bankruptcy. The study concludes by suggesting a comprehensive, multi-pronged approach to household deleveraging in Thailand.