Pichai: New AMC may be set up to buy people’s debt

Finance Minister Pichai considers a new asset management company to buy people’s debt, following Thaksin’s proposal to ease Thailand’s financial burden.

Deputy Prime Minister and Finance Minister Pichai Chunhavajira said on Tuesday that a new asset management company (AMC) may be established in collaboration with banks to purchase people’s debts.

Pichai revealed the proposal just a day after former Prime Minister Thaksin Shinawatra suggested a similar idea.

On Monday, Thaksin stated that he had discussed with his daughter, Prime Minister Paetongtarn Shinawatra, the possibility of eliminating Thai people’s debt by purchasing all personal debt from the banking system and allowing individuals to gradually repay it.Speaking to reporters before attending the weekly Cabinet meeting at Government House, Pichai said he would meet with the Thai Bankers’ Association on Tuesday afternoon to discuss ways to address the overwhelming debt burden, which is seen as a key factor hampering economic growth.

Pichai explained that commercial banks typically manage non-performing loans (NPLs) through debt restructuring. However, over time, banks may find it unfeasible to continue restructuring these loans.

In such cases, a joint effort to establish an AMC would be a more viable solution, he said.He added that the AMC should be formed in cooperation with banks holding the NPLs, and private firms might also be interested in participating.

The finance minister noted that the government's role in supporting such an AMC had yet to be determined.

“But this is still just an idea, and it requires further discussion. In any case, the operation may be conducted outside the banking system,” Pichai said.

He also stated that it was unclear whether the AMC would require government funding.

“So far, the conditions remain uncertain,” he said, adding that the AMC might cover both NPLs and performing loans, including home and car loans.

(2025/03/18-00:00)