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Housing loans grow
at a slower pace, says BBL
Thailand’s housing loans grew at a slower pace in the
first five months of this year due to the economic slowdown and higher
interest rates, according to a leading banker.
Ratchanee Nopmuang, Senior Vice President of Bangkok Bank, said that the
upward interest rate trend had slowed potential homebuyers decisions to
purchase houses.
The upshot is that the total housing loans extended in the first five months
of this year has increased by only 4-5 billion baht or 5 per cent; well
below the earlier target of 20 billion baht or 25 per cent.
She said the bank at this stage has no plan to use competitive interest
rates to tap customers. Instead, it will place an emphasis on house transfer
and marketing promotions on a continual basis.
She revealed that approved loans in the first five months of this year
reached 75-80 per cent of the total loan applications, close to that of the
same period last year.
Mrs. Ratchanee added that the bank would revise the loan growth target once
figures are released by the end of this month.
She also brushed aside mounting concerns of possible loan default, saying
the customers’ repayment prospect remains sound. (TNA)
Revenue for 2006 fiscal year to reach 1.36 trillion baht:FPO
The Ministry of Finance’s Fiscal Policy Office (FPO)
projects that the government’s total revenue for the 2006 fiscal year will
reach 1.36 trillion baht as targeted, while total spending is projected to
be 1.26 billion baht or 93 per cent of the budget.
However, the spending, when combined with 119.39 billion baht disbursed in
the previous year, will rise to 1.38 billion, higher than the estimated
revenue, said a source in FPO.
To accommodate the changing economic and financial status of the country,
the Finance Ministry stipulated that the country’s public debts not exceed
50 per cent of the gross domestic product (GDP) and no more than 15 per cent
of the budget.
The stipulation is made to ensure that a balanced budget is adopted and that
the investment to spending ratio is no lower than 25 per cent.
To adjust to the factual data, FPO has revised the economic growth estimate
for the 2006 fiscal year downward to 4.7 per cent from 5 per cent and for
the 2007-2010 fiscal years to 5 per cent from 5.5 per cent.
It has also decreased the inflation rate projection to 3 per cent from 3.5
per cent in the 2006 fiscal year and in the 2007-2010 fiscal period. (TNA)
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