In a significant move to alleviate the financial burdens of citizens grappling with debt, the Thai government has reported substantial progress in its ongoing debt relief initiatives. As of April 2025, a total of 71,010 individuals have benefited from the program, receiving financial assistance amounting to 2.25192 billion baht. This effort is part of a broader strategy aimed at addressing the challenges posed by informal debt.
Mr. Phirachai Theeraruech, the Director of the Fiscal Policy Office and spokesperson for the Ministry of Finance, provided an update on these measures. He emphasized that the assistance program, which began on December 1, 2023, and continues through April 10, 2025, has been instrumental in helping those affected by informal lending practices. The initiative has collaborated with various financial institutions, including the Government Savings Bank and the Bank for Agriculture and Agricultural Cooperatives, to facilitate access to formal credit.
According to Mr. Phirachai, "Since the program's inception, we have approved assistance for 71,010 individuals, with a total allocation of 2.25192 billion baht. This figure reflects a significant increase from previous reports, highlighting our commitment to supporting citizens in need." He noted that the number of beneficiaries has risen by 4,038 individuals since March 27, 2025, with an additional 81.98 million baht approved for assistance.
The Ministry of Finance is keen to promote the establishment of regulated microfinance businesses, known as pico-finance, which aim to provide fair lending options to individuals who often turn to informal lenders. Mr. Phirachai explained that this initiative is designed to ensure that citizens have access to loans at reasonable interest rates, thereby protecting them from predatory lending practices that often exploit vulnerable populations.
As of March 2025, a total of 1,155 licensed entities have begun operating pico-finance services across 75 provinces, offering a total of 5,020,906 accounts with a cumulative loan amount of 49,067.28 million baht. Of these, 375,568 accounts remain active, with an outstanding balance of 7,054.58 million baht. This initiative not only aids individual borrowers but also encourages responsible lending practices within the financial sector.
In addition to these debt relief measures, the government has also approved a budget of 781.88 million baht to assist households affected by flooding in 2024. On April 22, 2025, Mr. Traisulee Traisoranakul, the Deputy Spokesperson for the Prime Minister's Office, announced that this funding will provide additional support of 9,000 baht per household for those impacted by the recent natural disasters.
Mr. Traisulee stated, "The Cabinet has approved these measures to ensure that financial assistance reaches those who need it most. We are committed to providing timely support to help families recover from the effects of flooding and other crises." This initiative is set to extend the assistance period by an additional 15 working days, ensuring that all eligible households receive aid.
The funding will be allocated to regions that experienced flooding between May 20, 2024, and December 31, 2024. Specifically, it will target areas in four provinces, including Chai Nat, Buriram, Samut Sakhon, and Sing Buri, as well as 13 other provinces affected during the latter part of the year.
As of now, the government has successfully disbursed funds to 596,307 households, totaling 5,366.76 million baht, while 402,437 households are currently awaiting their payments, which amount to 3,621.93 million baht. Additionally, the government is in the process of verifying claims for 3,532 households, with an allocation of 31.78 million baht pending.
In a related effort, on April 21, 2025, Mr. Warawut Silpa-archa visited Baan Kaho Chumchon 1 in Suphan Buri to engage with community members and low-income individuals. His visit aimed to ensure that these vulnerable groups do not fall prey to unregulated financial institutions. Mr. Warawut's outreach highlights the government's commitment to protecting citizens from falling into debt traps.
As the government continues to navigate the complexities of debt relief and financial assistance, it remains focused on enhancing access to regulated financial services and ensuring that all citizens can achieve financial stability. The combination of debt relief programs and targeted financial aid for disaster victims underscores a comprehensive approach to fostering economic resilience among Thailand's most vulnerable populations.
