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Govt confident Parliament will pass Bt2 trillion loan bill this month
Foreign investors were assured last week that the government’s massive
investment on infrastructure development to upgrade Thailand as a
‘connectivity hub’ for Southeast Asia will be accomplished as planned.
Varathep Rattanakorn, minister to the prime minister’s office and deputy
agriculture minister, said in a seminar on “Business Opportunities for the
Private Sector” that the government was determined to carry out the mega
projects to attract foreign investors and tourists to the region.
He called on countries in the Mekong sub-region to collaborate with Thailand
in developing the transportation system, whether the rail system or
highways, as well as additional border crossings.
The government wants the private sector overseas to join hands in connecting
the region by rail and road, while academic cooperation and tourism should
be also promoted, he said.
Varathep said the amnesty bill should be approved by Parliament as scheduled
while the 2014 budget bill should be debated in the House next week, after
which the bill to seek Bt2 trillion in loans for infrastructure development
would be slated for deliberation, possibly within this month.
Related government agencies have mapped out investment plans, especially
building the electric mass transit system on 10 routes in Bangkok and its
outskirts, the development of a dual track system and a high-speed train
system on three major routes - Bangkok-Chiang Mai, Bangkok-Hua Hin and
Bangkok-Nong Khai.
When the bill for Bt2 trillion in loans is passed by Parliament, the
Transport Ministry will possibly seek the loans early next year so that the
mega project could kick start as soon as possible, Varathep said. (MCOT)
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Bank of Thailand closely
watching surging bad loans
Non-performing loans (NPL) in the first half of the year
were reported at Bt260 billion, an increase by Bt8.8 billion, a senior Bank
of Thailand (BoT) official said last week.
Anupap Kuvinichkul, BoT senior director for financial institutions strategy
department, said the non-performing loans mostly involved consumer goods
while the greatest number of outstanding loans relate to auto purchases.
The NPL level had previously been stable at 2.2 percent. Accordingly, the
BoT must closely monitor the situation, he said, adding that commercial
banks have been instructed to apply more stringent measures in offering
loans and be prepared for economic risk and uncertainty.
Most commercial banks are aware of the importance of loan quality and their
reserves in Q2 increased to Bt29 billion, consequently strengthening their
reserves to 15.7 percent, Anupap said.
He said loans expansion in Q3 will be less active in accord with a slowdown
in domestic consumption and export.
This year’s loans will be 13-14 percent higher as forecast, following growth
at 12.8 percent in Q2 and 13.2 percent in Q1, he said, adding that loans for
consumer products slid by 19.5 percent as the first-car purchase scheme
ended and most cars were delivered to first-time buyers.
Loans for small and medium-size businesses were down to 14.9 percent while
loans for major businesses were 10.1 percent higher.
Anupap said US and European economic recovery later this year and the
government’s 2 trillion investment on infrastructure development will
contribute positively to the growth of major businesses and the export
sector.
Outstanding loans of financial institutes in Q2 were at Bt10.1 trillion, an
increase from Bt9.6 trillion at the end of last year, while commercial
banks’ profits in Q2 were at Bt45.8 billion, down from Q1 by Bt6.6 billion
or 12.5 percent, he said. (MCOT)
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Thai shippers fear exports will underperform this year
The Thai National Shippers Council (TNSC) will possibly
adjust Thailand’s export growth for this year to less than 3 percent.
TNSC president Nopporn Thepsitha said the council was awaiting the country’s
July export figures after a disappointing performance in the first six
months of the year.
“We hope that exports in the remaining months of the year will be at an
average of US$20.4 billion a month, or an increase from US$18.9 billion, to
accelerate this year’s export growth to 3 percent,” he said.
Thailand’s exports to the Southeast Asian region had increased by 4 percent
in the first half of the year - a positive sign compared to exports to other
major markets which have been shrinking, he said.
He said exports to Southeast Asia must be boosted to an 8 percent growth so
as to achieve this year’s export target.
Nopporn said the TNSC has entered cooperation with the Foreign Trade
Department, the Foundation for Development Institute of Small and Medium
Enterprises and the Association for the Promotion of Thai Small and Medium
Enterprises to develop the efficiency of Thai small and medium enterprises
to help boost the country’s exports. (MCOT)
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