Thai Economy To Grow 3.5-4.5% This Year

Thai economy to grow 3.5-4.5% this year

BANGKOK: -- Jan 27 (TNA) – The Thai economy is likely to grow 3.5-4.5 per cent this year, bolstered by the wider global economic recovery, according to a top banker.

Siam Commercial Bank president Kannikar Chalitaporn said that overall the economy is forecast to grow further in 2010 on par with the global economic resilience being experienced elsewhere, unless Thailand’s domestic political conflicts turn violent.

The bank expects its revenue would expand 17 per cent and lending would grow 7-10 per cent or around twice the GDP this year.

Of this, the 11-14 per cent loan growth rests with the Corporate Banking Group, the 4-7 per cent expansion with the Business Banking Group, and the 6-10 per cent increase with the Retail Banking Group.

Non-performing loans (NPLs) is projected to fall to 3.9 per cent from 4.4 per cent last year, while the interest rate is likely to rise by 25 basis points in the second half of this year and the baht continues to strengthen against the US dollar.

Regarding the Map Ta Phut Industrial Estate problem, Mrs Kannikar said that the bank had not been adversely affected by the case because the loan amount extended to investment projects in the industrial estate is less than Bt2 billion, which is considered minimal.

Mrs Kannikar said the US government’s issuance of regulations to control financial and investment transactions by commercial banks would not affect Thai commercial banks. (TNA)

-- TNA 2010-01-27

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