The first Debt Resolution Market was held at Phuket Provincial Hall on Sunday (Jan 14). The event is to be every second Sunday of the month, said Subchacha Intharit, Director of the Phuket Provincial Damrongdhama Center (Phuket Provincial Ombudsman’s Office)
This initiative aims to foster debtor-creditor engagements, facilitate debt mediation negotiations, and bring debtors into the banking system, all while promoting vocational training to create additional careers and increase income, thereby enhancing the ability of debtors to repay their debts, Mr Subchacha said.
The initiative received support from the Government Savings Bank and the Bank for Agriculture and Agricultural Cooperatives of Phuket Province, with officials offering knowledge and participating in the debt mediation process. Cooperation was also extended by government agencies, including the Phuket Provincial Labor Office, Phuket Provincial Employment Office, Phuket Provincial Social Development and Human Security Office, and Phuket Provincial Community Development Office, providing career counseling to debtors, he added.
Phuket Governor Sophon Suwannarat explained that the Phuket Provincial Office had also established its ‘Center for Solving Informal Debt’ on Dec 1.
As of Jan 12, the centre had seen 604 applications for assistance registered, involving 490 creditors and a total debt amounting to B26,696,954.67, he noted.
In response, 227 debts had entered the negotiation process, with six creditors opting for mediation. A substantial breakthrough had already been achieved, Governor Sophon said, with 85 debtors successfully negotiating a total debt reduction of B1.033 million.
“The event was not just a one-time effort. Phuket Province [the provincial government] is committed to organising the debt relief market activities on a monthly basis. This ongoing commitment aligns with the government’s policy to continually assist debtors and creditors, ensuring they engage in the debt mediation negotiation process regularly,” Gov Sophon said.
Governor Sophon also clarified the government’s policy, emphasising debt reconciliation rather than forgiveness. “The focus is on bringing debtors into the banking system, ensuring operational guidelines are comprehensive, especially regarding debtors’ occupations and income,” he said.
“The Phuket Provincial Debt Resolution Market signifies a crucial step forward in addressing long-term debt problems within the province. With the collaborative efforts of various stakeholders, the initiative aims to bring as much debt as possible into the system, providing financial relief and sustainable solutions for the community,” Governor Sophon concluded.