Banking
The Bank of Thailand new loan rules
The Bank of Thailand today announced a “preventive measure”, by setting the loan to value (LTV) limit for condominium and housing purchases.
The Bank of Thailand today announced a “preventive measure”, by setting the loan to value (LTV) limit for condominium and housing purchases.
Thailand’s property and stock markets run a risk of facing a bubble burst if foreign capital continues flowing into Asia in large amounts because many countries in the region remain under inflationary pressure, according to a leading economist.
The loan to value ratio for low-rise housing price will be capped at 95 per cent, starting from January 1, 2012.
For condominium units costing less than Bt10 million, the LTV is capped at 90 per cent. It will be applied to purchase contracts.
For low-rise properties, the cap on LTV is 95 per cent. It will be applied to purchase contracts dated January 1, 2012 onwards and will not be retroactive.
The Financial Institutions Policy Committee is of the opinion that the BOT should cap the LTV ratio, with consideration of impacts on all parties like buyers, developers and commercial banks. This preventive action will mitigate future risks.
The problem might get out of hand if we wait until there is a clear sign of risks or when problems emerges,” Bank of Thailand Deputy Governor Krirk Vanikkul
BOT launches new rules
Economics
Thailand’s economic growth expected to return to 2019 levels in mid-2023
Although the economy would recover next year, the recovery is still substantially below potential level resulting in a large output loss and could affect Thailand’s potential economic growth in the future with the economy expected to return to 2019 levels in mid-2023.
The Siam Commercial Bank (SCB), one of Thailand’s largest commercial banks, said in its latest economic outlook report that the country’s economy may wait until the second semester of 2023 to return to 2019 growth levels.
(more…)Banking
S&P maintains Thailand’s credit rating at BBB+ with stable outlook
Standard and Poor’s (S&P) maintained Thailand’s credit rating at BBB+ . The global rating firm expects the country’s gross domestic product (GDP) to grow at 1.1% this year, with a more optimistic growth at 3.6% per year from 2022 to 2024.
Standard and Poor’s (S&P) maintained Thailand’s credit rating at BBB+ . The global rating firm expects the country’s gross domestic product (GDP) to grow at 1.1% this year, with a more optimistic growth at 3.6% per year from 2022 to 2024.
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