Banking
Moody’s concerned on rising debt
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.

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.
Banking
Thailand’s Public debt to GDP ratio within framework says Finance Minister
Currently, Thailand’s ratio of public debt to gross domestic product (GDP) stands at 49.34 percent, which is below the Fiscal Sustainability Framework set at 60 percent.

BANGKOK (NNT) – The Thai economy is gradually recovering, with monthly economic indicators, such as the consumer confidence index and domestic spending, showing positive signs.
(more…)Banking
Raising inequality posing credit risks for sovereign in APAC countries
Governments with weaker social protection systems and tighter fiscal positions will face tougher challenges in tackling income inequality

Moody’s Investors Service says in a new report that the impact of the coronavirus pandemic will exacerbate income inequality in APAC, posing credit risk for sovereigns across the region and in particular for those with weaker fiscal capacity and social protection systems.
(more…)Banking
Bank of Thailand steps in to curb recent baht strength
Bank of Thailand accelerates measures to advance the development of the new Thai FX Ecosystem and to limit excessive currency volatilities

In a press release published on the 20th of November, the central bank’s Monetary Policy Committee (MPC) has expressed concerns over the rapid appreciation of the baht as this affects the fragile economic recovery.
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