Four parties battle over debt cures to win grassroots votes
Four big parties unveil rival debt plans—from NPL write-offs and moratoriums to new credit scoring—targeting households as debt hits 86.8% of GDP
The 2026 election battleground is heating up as the debt trap becomes a tough problem that is dragging down the country’s purchasing power, prompting political parties to roll out non-performing loan (NPL) remedies as a flagship policy to win support from vulnerable grassroots groups.
Krungthep Turakij compiled economic policy proposals from four major parties seeking to break down household debt, which stands as high as 86.8% of GDP, through different methods—ranging from clearing credit histories and debt moratoriums to restructuring.
Pheu Thai: a comprehensive debt-solution package
Pheu Thai is promoting the “Thai Rai Jon” policy, focusing on measures to break free from legacy debt so people can get back on their feet. Key measures include:
Clearing small NPLs: For unsecured NPLs overdue for more than one year with balances below 200,000 baht, debtors pay only 10% of the principal to close the debt immediately.
Clearing retirement-age debt: Debtors aged 60+ with NPLs at state financial institutions, with balances not exceeding 100,000 baht, would have their debts fully cleared by the state, with no payment required.
Debt moratorium for farmers and SMEs: A three-year suspension of principal and interest payments for farmers with debts not exceeding 500,000 baht, and a one-year debt moratorium for SMEs affected by Covid—covering more than 2.3 million accounts with total debt exceeding 200 billion baht.
Reward scheme for good debtors: “Pay well for 1 year, get 1 instalment free” for debts not exceeding 100,000 baht, aimed at promoting financial discipline.
Clearing informal debt: Targeting more than 1.4 million informal debtors, with state financial institutions providing low-interest loans of 50,000 baht per person.
People’s Party: reform credit scoring
The People’s Party is pitching structural debt reform under the “Thai Thao Kan” vision, focusing on technology and fair data systems, including:
Debt relief for farmers aged 70+: Clearing debts for farmers aged 70+ with good repayment records, so retirees do not carry debt for life. If repayments do not cover the principal, the debt would be cut by 50%, and the repayment schedule adjusted to finish within five years.
Incentives to change farming practices: The state would reduce existing debt if farmers change crops or stop planting in unsuitable areas—cutting debt by 20% (capped at 100,000 baht). If they invest in water systems or digging ponds, debt would be reduced by 20% (capped at 100,000 baht). If they switch to perennial or economic trees, debt would be reduced by 30,000 baht per rai, capped at 10 rai.
A new credit scoring system: Using utility and phone bill payments—such as water, electricity and telephone bills—to calculate credit, instead of relying only on bad-debt history, to improve access to fairer interest rates.
Rewards for good repayment: Proposing a 10% interest rebate for good payers, or allowing borrowers to accumulate credit to reduce interest on new loans to 1–2%.
Bhumjaithai: a three-year moratorium—principal frozen, no interest
Bhumjaithai is presenting “Pood Laeo Tham Plus”, focusing on liquidity support and stabilising borrowers in the formal system:
Three-year debt moratorium: For formal-system debts up to 1 million baht, with the state covering interest during the period.
A state AMC: Establishing a state asset management company to buy and manage NPLs, absorbing bad debt from banks and making it easier for borrowers to restructure.
Emergency loans: Providing 50,000 baht per person in liquidity, without collateral, to address urgent financial needs.
Low-interest SME loans: “Made in Thailand SME Plus” via public procurement, alongside credit guarantee mechanisms and support to open new markets.
Democrats: unlock provident funds, set up a cooperative bank
The Democrat Party is promoting “Thai Hai Jon”, focusing on legal measures that would not burden the budget:
Use PVD and GPF to reduce mortgage debt: Amending laws to allow members to use provident fund (PVD) and Government Pension Fund (GPF) money to repay housing debt before retirement.
Establish a cooperative bank: Upgrading more than 2,000 savings cooperatives into a bank to manage 3.3 trillion baht in capital more effectively for debt management.
Clear debts for farmers aged 65+: Writing off BAAC debt for elderly or disabled farmers who can no longer work—around 300,000 people—with debt of 70 billion baht, treated as bad debt already covered by reserves, so it would not affect the bank’s financial position.
Opposition stance: The party said it does not support abolishing the credit bureau or blanket debt moratoriums, arguing these would undermine financial discipline and damage the banking system in the long term.
The February 8, 2026 election reflects how all parties are trying to break down household debt, which stands at 86.8% of GDP and is weakening domestic purchasing power. However, voters should also consider value for money and the country’s fiscal position, to ensure any debt solution addresses root causes rather than merely closing wounds temporarily.
