Concerns are mounting over Thailand’s individual and SME borrowers, as their debt leverage ratio and asset quality are seen to be increasingly vulnerable to the sluggish economic growth conditions, says Moody’s Investors Service.
“We do have some concerns around the sectors of the economy that have been exposed to a low-growth environment for a while, which are relatively more vulnerable,” said Gene Fang, Singapore-based associate managing director of the financial institutions group at Moody’s.”
Although we do see household debt topping out or plateauing to some degree, we think that a continued spell of weak macroeconomic growth is going to put continued pressure on some borrowers who may be overleveraged.”
He said non-performing loans (NPLs) in the personal loan segment had recorded the most growth in bad debts, greater than the corporate sector, as the slow economic environment had weakened consumer debt repayment ability.
Thailand’s household debt swelled to 85.9% of GDP or 10.4 trillion baht at the end of last year from 84.7% or 10.2 trillion at the end of the third quarter, the Bank of Thailand reported.
The Importance of E-Wallets for Online Gaming Sites
With e-wallets and cryptocurrency being the most relevant options, banks have been put on the side burner, especially when e-wallets and cryptocurrency allow for fast electronic transfer, that is done instantly.
Thai Government to issue Bt50 bln ( $1.57 bln)Savings Bonds to fund COVID-19 Relief Measures
The special savings bonds are available via the “Sasom Bond Mung Kung” e-wallet, abbreviated to “Sor Bor Mor” in Thai on Krungthai Bank’s Pao Tang mobile app, and through four dealer banks. The minimum purchase of these bonds is 1,000 baht, without no maximum. Interest is paid twice a year.
BANGKOK (NNT) – Thailand’s Public Debt Management Office (PDMO) plans to issue “Ying Aom Ying Dai” (the more you save, the more you earn) government savings bonds, worth 50 billion baht, next month, aiming to use the funds to finance state projects to ease the impacts of the pandemic.(more…)
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