Government launches war room with banks to tackle debt and boost liquidity

Prime Minister and Interior Minister Anutin Charnvirakul on Monday met with the Thai Bankers’ Association and commercial bank executives together with his economic team. This marks the first formal meeting between a Thai prime minister and the bank association in 58 years, aimed at securing cooperation to address grassroots economic challenges, from household and SME debt to injecting liquidity into the market. The government outlined its Quick Big Win plan to accelerate economic recovery and enhance Thailand’s competitiveness regionally and globally.

After the meeting, the prime minister said the government seeks the association’s support on three key issues: household debt, SME debt, and overall financial obligations. The authorities are requesting that banks ease processes and speed up interventions to resolve outstanding debt and ensure liquidity for clients who still have production capacity to supply the market.

Regarding liquidity, the government urged banks to increase the flow of funds into the system. Without fresh capital, existing funds could be lost, and it is the banks’ responsibility to assess risks carefully.

At the same time, business operators must adapt to stay competitive. Many remain attached to traditional methods while competitors are evolving. Companies must enhance product value, improve production efficiency, and lower costs. The government is working to support wider market access for Thai products.

Discussions with Commerce Minister Suphajee Suthumpun emphasised that Thailand cannot rely solely on its largest trading partners and must diversify exports. The government aims to support producers and exporters of Thailand-branded goods to ensure recognition and trust in global markets.

The prime minister also acknowledged bankers’ concerns about ASEAN and global competition. The government’s economic team, with extensive financial experience, plans to implement today’s discussions promptly.

Additionally, the government will focus on enhancing Thailand’s key sectors, including tourism and services, medical wellness, agriculture — supporting producers, processors, and farmers — as well as the automotive and high-tech industries, which have sufficient capacity for expansion.

Govt policy focuses on security and economy

Anutin revealed that the draft government policy has been finalised. After consultations with the private sector, including the Thai Bankers’ Association, the Thai Chamber of Commerce, the Federation of Thai Industries, and the public, the policy has been adjusted to reflect the needs of all stakeholders. It covers national security, social issues, the economy, citizens’ livelihoods, and the government’s operational plan.

The government has pledged to dissolve parliament within four months. Given that the current parliamentary session ends in late October 2025, there will not be sufficient time to introduce new legislation. Therefore, the government will make full use of existing laws. Any criminal activity that undermines the economy or violates the law, whether domestic or cross-border, will be dealt with strictly under current legislation.

Regarding participation in the United Nations General Assembly (UNGA), the matter is under consideration, pending the Speaker of the House’s scheduling of the policy statement. Following the swearing-in ceremony on September 24, the Cabinet will meet to discuss the issue and consult with the Council of State and the Ministry of Foreign Affairs to clarify the government’s official status in attending the UNGA. This is to ensure that the matter is handled with full clarity.

Task force launched to tackle strong baht and shadow economy

Deputy Prime Minister and Finance Minister Ekniti Nitithanprapas stated that concerns over the strong Thai baht and the shadow economy require urgent clarification. The Ministry of Finance is coordinating with relevant agencies, including the Bank of Thailand (BOT), the Anti-Money Laundering Office (AMLO), and the Securities and Exchange Commission (SEC), to trace and address the sources of irregular funds.

A joint task force has been established to “connect the dots” and identify the origins of these funds for targeted solutions, which will be implemented immediately.

Payong Srivanich, President of the Thai Bankers’ Association, added that the movement of capital occurs across multiple channels — money and capital markets, foreign exchange, banking, and informal networks — as well as physical transfers. BOT and AMLO are actively working to integrate the data for effective oversight.

Focus on sustainable short-term economic recovery

Ekniti highlighted that discussions with the bank association focused on reviving Thailand’s economy, addressing both structural issues and immediate challenges. The government aims for recovery measures that deliver rapid results while remaining sustainable. Priority areas include:

• Household debt management in cooperation with the bank association
• SME liquidity support, ensuring businesses are prepared to compete in the modern economy
• Enhancing workforce skills to boost competitiveness and productivity

Payong noted that the talks covered household debt, industrial competitiveness, and overall economic policy. The association urged the government to consider household debt as a central issue and to implement a “Quick Big Win” plan within the four-month period before parliament is dissolved, ensuring concrete results.

While current bank liquidity is adequate, fund flows to critical areas remain insufficient and require urgent coordination with the government. Further clarity will follow after the government presents its policy statement to parliament.

This meeting marked the first time in 58 years that a Thai prime minister, together with the economic cabinet, has formally met the Thai Bankers’ Association to exchange data and outline clear strategies to address public and employment-related economic issues.