The risk of default on credit card loans rose significantly in the first quarter this year in Thailand, driven by the Bank of Thailand (BoT)'s mandate for a higher minimum payment rate. Thailand faces credit card default risks (Photo:bangkokpost.com)Bangkok (VNA) – The risk of default on credit card loans rose significantly in the first quarter this year in Thailand, driven by the Bank of Thailand (BoT)'s mandate for a higher minimum payment rate. During the pandemic, the central bank temporarily reduced the minimum payment requirement to 5% to alleviate the debt burden on borrowers. Surapol affirmed that with the notable surge in SMs for credit card loans, there is mounting pressure for higher NPLs in the country’s economy. Concurrently, more young people are applying for credit cards over the past few yearsNCB data revealed roughly 36,000 new credit cards were issued in the last two years, with 23,000 held by millennials aged between 27 and 44.

Source: Bangkok Post May 10, 2024 03:00 UTC