Thaksin Proposes Bold Debt Relief Plan At Pishnulok University

On March 17, 2025, former Prime Minister Thaksin Shinawatra addressed the pressing issue of household debt during his talk at Pishnulok University, highlighting his vision for economic prosperity for all Thais. Thaksin proposed audacious ideas for alleviating the financial burdens faced by citizens, such as the government potentially purchasing public debts from the banking system.

"We will buy all the people's debts and let the people repay without needing to pay the full amount," Thaksin stated, emphasizing the need for innovative approaches to tackle Thailand’s growing household debt crisis. He explained how freeing citizens from their debt obligations could allow them to regain control over their financial futures and stimulate economic growth.

Thaksin's remarks came after discussions he had on March 13, 2025, with the National Anti-Corruption Commission (NACC) about strategies the government could adopt to benefit the public financially. He noted, "The government must find ways to inject liquidity back to the economy, which may not be its direct responsibility but is necessary for citizens to keep thriving." He underlined the need for reform to encourage financial institutions to lend more actively to Small and Medium Enterprises (SMEs) and individuals, reflecting on the current state of commercial banks being complacent, as they rake in profits without supporting the community.

Addressing the economic environment, Thaksin remarked, "Today, opportunities for Thai people have diminished significantly. Commercial banks are not willing to extend credit to SMEs, which is detrimental to the economy." He called for urgent governmental action to inject new liquidity and restore vibrancy to the economy, highlighting the importance of creating opportunities for all citizens regardless of their current financial status.

One of Thaksin's key initiatives involved the implementation of digital wallets aimed at eleviating financial access throughout the population. He described how the digital wallet project would help individuals use financial resources without feeling dependent on state funds. This, he asserted, would instead embed money within everyday transactions. “The digital wallet will become like the '30 Baht for Every Illness' policy, as it creates convenience for users to manage funds right from their pockets,” he emphasized, illustrating how the technology could facilitate economic empowerment.

Meanwhile, Pichai Chunhawachira, the Deputy Prime Minister and Minister of Finance, also presented initiatives to increase credit accessibility through the Government Savings Bank. He recently announced the launch of the “Credit Building for Opportunity” project. This novel financial strategy is particularly targeted at those who have never interacted with banks, aiming to establish credible credit histories to enable borrowers to access financial resources.

"Credit building is part of our plan to help those who never borrowed from banks before," stated Withaya Rattanakorn, director of the Government Savings Bank. He noted the ambitious aim to assist 300,000 individuals within the first year, helping to support the goal of financial inclusion across various sectors of society. The total loan amount is set at up to 20,000 baht per individual, with the interest rate fixed at 0.60% per month.

The scheme posits to lessen the monthly financial load on borrowers, allowing for initial months without principal repayments. This initiative is expected to empower over 500,000 individuals and bring 14 billion baht of liquidity back to families and communities across Thailand.

Through both Thaksin’s proposals and Pichai’s government initiatives, it becomes evident they aim to tackle the underlying economic challenges facing Thai households today. Pichai outlined the necessity for measures to nurture national economic growth through financial instruments drawing people out of debt and providing new opportunities.

These interconnected strategies create a vision of sustainable financial growth, ensuring the delicate balance between individual agency and state support is maintained. With these ideas continuing to evolve, Thailand could see significant shifts toward more inclusive economic frameworks, positioning the nation for long-lasting prosperity and recovery from debt burdens.

Thaksin reaffirmed his commitment, expressing, "We can do everything, but sometimes, due to changing circumstances, it takes longer than expected to implement reforms. And it is necessary to give the current government adequate time to address these pressing economic challenges."