Household Deleveraging: International Practices: Thailand

Selected Issues Papers, May 9, 2025

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Household sector over-indebtedness has been a critical issue in Thailand in recent years.
The paper summarizes deleveraging measures implemented so far in Thailand.
The study concentrates on measures addressing high levels of unsecured loans, deemed more relevant to Thailand’s current risk profile.

Four country case studies are presented:
- Brazil
- Hungary
- Korea
- Malaysia
Focus of the case studies:
- Measures introduced by authorities to address high levels of unsecured loans.
- Lessons drawn that are most relevant to Thailand’s situation.

Brief overview of other relevant international experiences in:
- Facilitating debt rehabilitation
- Debt forgiveness
- Bankruptcy

The study concludes by suggesting a comprehensive, multi-pronged approach to household deleveraging in Thailand.
Key policy dimensions implicit in the study’s scope (as derived from the case study focus and international overview):
- Combining regulatory, supervisory, and social-support measures to address unsecured household debt.
- Leveraging international experiences in debt rehabilitation, forgiveness, and bankruptcy frameworks to inform domestic policy design.