Bad loans relating to farm products rise 12% in first quarter

By The Nation

 

 

Non-performing loans (NPLs) relating to agricultural products reached 12 per cent in the first quarter of this year, sitting at Bt25 billion, TMB Analysis reports.

 

The retail and wholesale businesses for small and medium-sized enterprises (SMEs) are in a worrisome situation in terms of debt, said Naris Sathapholdeja, head of TMB Analytics.

 

This is as a result of the technological disruption in businesses and the increasing popularity of online trading, leading traditional SMEs to shrink and NPLs to increase.

 

In the first quarter, wholesale business and SME loans contracted by 1.2 per cent year on year, but NPLs increased by 7.4 per cent. Businesses in the wholesaling of construction material saw an increase in NPLs by 6.8 per cent.

 

Furthermore, agricultural wholesalers also saw NPL increases, of 11.8 per cent year on year with normal loans contracting by 11 per cent. Food wholesalers saw NPLs grow by 7.7 per cent and loans contracted by 6 per cent. Small retail businesses’ NPLs grew by 6.8 per cent and loans grew by only 0.8 per cent.

 

New NPL formation during the first quarter of this year was valued at around Bt25 billion – some 53 per cent of which are from the retail and wholesale sectors, valued at Bt12 billion.

 

Naris said that wholesale businesses are more worrisome than retail businesses. This is because wholesalers are directly affected by large businesses that can offer cheaper products.

 

As for retail businesses, even if they are negatively impacted by e-commerce, entrepreneurs still have the opportunity to start trading their goods online.

 

Kasikornbank has been cautious on releasing new loans amid rising NPL levels in the retail, wholesale and agricultural sectors. NPLs are an economic indicator that the stability of these businesses has decreased and thus, financial institutions must be more careful when giving out loans, said Preedee Daochai, president of Kasikornbank.

 

Apiphan Charoenansusorn, president of Siam Commercial Bank, said: “Industries that are at risk must be monitored closely. For instance, banks have to take more caution on giving out loans to the agricultural and retail sectors.”

 

Source: https://www.nationthailand.com/business/30373266

 

-- © Copyright The Nation Thailand 2019-07-22

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what has thailand learned the last decades = NOTHING

So many dark clouds over the farmers, yet no rain.

Keep putting prices up this was always going to happen, Most farmers I know are struggling not to just pay debt but their workers too.

Rain has come to late for many.

39 minutes ago, justin case said:

what has thailand learned the last decades = NOTHING

They have learned that they are never wrong!

7 hours ago, webfact said:

As for retail businesses, even if they are negatively impacted by e-commerce, entrepreneurs still have the opportunity to start trading their goods online.

Eventually the "brick and mortar" retail outlets, especially those in the mega malls will shift to online shopping. Especially with quick delivery and generous return/refund policies.

What remains are out-of-business malls too expensive to tear down.

Thousands of visa 800.000 baht deposits to lend out. Hope mine is not an NPL. 

8 hours ago, webfact said:

Bad loans relating to farm products rise 12% in first quarter

Below is part of the announcement of the stimulus package a few days ago where the government is working hard to increase that bad debt percentage.

 

"Stimulus of financial measures and aid to workers, farmers and small business with bank loans"

 

In the new economic stimulus package the government will assist farmers, workers and small business to obtain (more) loans through the State banks.......presumably to get people further into debt.

Does anyone in this government know what they are doing? 

PM Prayut appointed fools to his ministry as payback for giving him their support. Thailand is now going to suffer the consequences of this political skulduggery. 

 

https://www.thaiexaminer.com/thai-news-foreigners/2019/07/18/new-thai-government-economic-stimulus-minister-somkid-thailand-airports-drop-passengers/

 

Yeah, and with no water this year for rice planting, this figure is only going to get worse.  Start looking for foreclosures in 2020 and 2021.  Another year of drought and family farms will be going out of business in spades.  Corporations will pick up the farmland for satang on the baht.  Then you can watch the wealth of Thailand go from 70% in the hands of 1% to 90% in the hand of 1%. 

Nothing like heading back to the Dark Ages and feudalism. 

Several off-topic and troll posts have been removed.

9 hours ago, webfact said:

Apiphan Charoenansusorn, president of Siam Commercial Bank, said: “Industries that are at risk must be monitored closely. For instance, banks have to take more caution on giving out loans to the agricultural and retail sectors.”

I think the first question would be who is your main customer - Exports ? Get big red rubber stamp out REJECTED now