Top Banker Shrugs Off Impact From Growth Downgrade

[george]

BAY chief shrugs off impact from growth forecast downgrading

BANGKOK: -- The downward revision of the economic growth estimate by the National Economic and Social Development Board to 4.5-5.5% this year will not adversely affect the business performance of the private sector and commercial banks, according to a top banker.

NESDB yesterday decreased its economic growth projection by around 1% from 5.6-6.5%, citing rising fuel prices had dampened the overall economic growth.

Chamlong Atikul, President of Bank of Ayudhya Plc (BAY), said the downgrading of the economic forecast by the national think tank would not hinder the business operation of commercial banks and private companies.

He voiced confidence the bank would definitely extend 30 billion baht of loans for the whole of this year following its success in lending 15 billion baht in the first five months.

He said lending in the second half was likely to improve from the first half during which fuel prices rose sharply.

On non-performing loans, he said, BAY set a target to reduce NPLs from 9.7% at present to 7-8% of the outstanding loans by the end of this year.

Mr. Chamlong added he believed trade deficits the country was experiencing would last only in the short run. The government could cope with the problem by attempting to increase the export.

On the interest direction, he said, local interest rates would definitely increase, but not for now.

--TNA 2005-06-07