Belgian Princess Shows Interest In Micro-Finance In Thailand

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Belgian princess shows interest in micro-finance
Wichit Chaitrong
The Nation


Belgian Crown Prince Philippe and his wife Princess Mathilde.

BANGKOK: -- Visiting Princess Mathilde of Belgium showed an interest in the development of micro-finance in the country but experts told her that easy access to credit and the lack of financial literacy had led to over-indebtedness among the poor.

The princess yesterday joined a round-table discussion on "Micro-finance Development in Thailand", hosted by Asian Development Bank (ADB) in Bangkok.

She asked a question about over-indebtedness among households. The princess also suggested that micro-savings could finance education for the next generation.

Sukanda Lewis, ADB team leader for the development of a strategic framework for financial inclusion, responded that easy access to credit, especially from government programmes and non-bank financial institutions, had resulted in over-indebtedness in Thailand.

She said that Thai households could access credits from state-run banks, village funds and non-bank lenders. Part of the problem is that people do not know how to mange their loans, she said.

Thai households also save less. Household savings were 7.8 per cent of gross domestic product in 2011, which is low compared to other Asean countries.

Meanwhile, emerging East Asia's outstanding local currency bonds in 2012 rose 12.1 per cent from the previous year to US$6.7 trillion, signalling ongoing investor interest in the region's fast-growing economies but also raising the risk of asset price bubbles, said the ADB's latest Asia Bond Monitor.

"Emerging East Asia is much more resilient than it used to be, but governments still need to be careful that the surge in capital inflows doesn't fuel excessive rises in asset prices and that they are prepared for a possible reversal in the flows when the economies of the US and Europe pick up again," said Thiam Hee Ng, senior economist at the ADB's Office of Regional Economic Integration.

At the end of 2011, the outstanding was only $5.7 trillion. The corporate markets, though smaller than the government bond markets, drove the increase, growing 18.6 per cent year on year to $2.3 trillion.

Emerging East Asia includes China; Hong Kong, China; Indonesia; South Korea; Malaysia; the Philippines; Singapore; Thailand; and Vietnam.

According to ADB, investment is increasingly coming from overseas, with foreign ownership in most emerging East Asia local currency bond markets increasing in the second half of 2012. In Indonesia, for example, overseas investors held 33 per cent of outstanding government bonds at the end 2012, while foreign holdings of Malaysian government bonds had reached 28.5 per cent of the total at the end of September 2012.

The fastest-growing bond market in emerging East Asia in 2012 was Vietnam, 42.7 per cent bigger than at end 2011, largely due to the rapid expansion in the country's government bond market. The Philippine and Malaysian markets grew 20.5 per cent and 19.9 per cent respectively, while India's market expanded by a strong 24.3 per cent to $1 trillion. Japan still has the largest market in Asia at $11.7 trillion, followed by China at $3.8 trillion.

Governments in emerging East Asia are increasingly opting to sell longer-dated bonds - another sign of strong market confidence in the economies of the region - which is making them more resilient to possible volatile capital flows. This is particularly the case in Indonesia and the Philippines. Maturities tend to be shorter in the corporate bond markets of the region.


-- The Nation 2013-03-19

[Thai at Heart]

When I read the headline, I thought yet meant loan sharking.

[Locationthailand]

On a serious note, what are the Princesses credentials to be able to enter the foray? I don't know much about her or why she would be included in attendee's with ADB. Wiki does not throw much light on her. A speech therapist born of nobility (admittedly near the grey money areas of Lichtenstein and Luxembourg) but does not indicate she has either ability or education for the role. No doubt in the background will be some connection to Rothschild.

[lazygourmet]

As far as I understood lese-majeste is also punishable in Thailand for any kind of criticism done to visiting royalties.

So, I will refrain myself to any further comment about my future queen... at least on a Thailand based forum

[drdoom6996]

On a serious note, what are the Princesses credentials to be able to enter the foray? I don't know much about her or why she would be included in attendee's with ADB. Wiki does not throw much light on her. A speech therapist born of nobility (admittedly near the grey money areas of Lichtenstein and Luxembourg) but does not indicate she has either ability or education for the role. No doubt in the background will be some connection to Rothschild.

I wish I had your credentials!!!!!!!!!!!!!!!!!!!!!!!!!

[MaxPag]

I wonder why Belgian Royalty is so much interested in Thailand, will not be the first they go to visit, and speak about economics...

[lungmi]

She had a good idea. A noble price winner of Bangladesh introduced it successfully.

But in Thailand it is impossible, the brainwashed suckers of Big Brother s golden hemorrhoids never will accept it.

[belg]

micro credit, aka, loan-shark ...

[market trader]

micro credit, aka, loan-shark ...

Yes but big difference. Legal.

[IsaanUSA]

micro credit, aka, loan-shark ...

Yes but big difference. Legal.

Loan sharks are illegal?

[A_Traveller]

Oddly and surprisingly given the real world experience, yes loan sharks are indeed illegal.

The charging of usury rates of interest is prohibited under the law.

Equally it is interesting to note that the close relationship between certain politicos and the electorate is mediated to a greater or lesser extent by those who have leverage [such as illegal money lenders]. The 2010 anti governmental actions took off shortly after the then administration [headed by the Democrats] put into place a process where such loans could be managed [transferred] by the government savings institutions at more sensible rates, thereby reducing the loan burden on the borrower, making it a legal transaction, whilst removing revenue from the lender and given the non-legal status of the originating loan reducing their influence.

The other point is how the village fund was described as Micro-Funding and lauded as such by the World Bank annual report. Funnily enough the following World Bank report are less enthusiastically mentioned by the supports of the programme since they pointed out the [now increasingly concerning] growth of private borrowing against savings/equity/income ratios.

Edited March 19, 2013 by A_Traveller

[hellodolly]

On a serious note, what are the Princesses credentials to be able to enter the foray? I don't know much about her or why she would be included in attendee's with ADB. Wiki does not throw much light on her. A speech therapist born of nobility (admittedly near the grey money areas of Lichtenstein and Luxembourg) but does not indicate she has either ability or education for the role. No doubt in the background will be some connection to Rothschild.

Not being up on these kind of things but could it be that no one who could make a difference bothered to attend the show.

She was the best they could do. Is she here to help Yingluck with her English?

[osiboy]

if i couldn't own it i wouldn't invest in it .anyone that would invest in a country that accepts corrupt as the norm and where xenophobia is part of the culture, would not get 1 bean out of me,............well that's SE Asia dealt with ,................NEXT !

[Scorpio1949]

On a serious note, what are the Princesses credentials to be able to enter the foray? I don't know much about her or why she would be included in attendee's with ADB. Wiki does not throw much light on her. A speech therapist born of nobility (admittedly near the grey money areas of Lichtenstein and Luxembourg) but does not indicate she has either ability or education for the role. No doubt in the background will be some connection to Rothschild.

A complete ridiculous way to reply on this issue. What the F is the problem that Belgium is close to Luxembourg ?

[billd766]

It is indeed done in Bangladesh and done very well indeed.

http://www.grameen-info.org/index.php?option=com_content&task=view&id=26&Itemid=175

97% of the borrowers are women (who usually have more common sense than men anyway) and the loans ARE repaid.

I read the article and found it very interesting.

However in another article it shows what happens when the government decides that IT wants to control the bank.

http://www.huffingtonpost.com/eliot-daley/microfinance-pioneer-grameen-bank_b_1793025.html

Quote Locationthailand

Posted 2013-03-19 08:35:55

On a serious note, what are the Princesses credentials to be able to enter the foray? I don't know much about her or why she would be included in attendee's with ADB. Wiki does not throw much light on her. A speech therapist born of nobility (admittedly near the grey money areas of Lichtenstein and Luxembourg) but does not indicate she has either ability or education for the role.
No doubt in the background will be some connection to Rothschild.

You could ask the same question of the current "Real PM" of Thailand and come up with a similar answer.

[mrtoad]

is she a reincarnation of Leopold II?

[billd766]

At least she is showing much more interest than the current government at their lady Real PM Yingluck.

[ZhouZhou]

At least she is showing much more interest than the current government at their lady Real PM Yingluck.

Micro credits is Thailand is one of the things you can blame on Thaksin.

[Locationthailand]

On a serious note, what are the Princesses credentials to be able to enter the foray? I don't know much about her or why she would be included in attendee's with ADB. Wiki does not throw much light on her. A speech therapist born of nobility (admittedly near the grey money areas of Lichtenstein and Luxembourg) but does not indicate she has either ability or education for the role. No doubt in the background will be some connection to Rothschild.

I wish I had your credentials!!!!!!!!!!!!!!!!!!!!!!!!!

Wishful thinking? Common knowledge does not the professor make - and sarcasm is the lowest form of wit... sorry !!!!!!!!!!!!!!!!!!!!!!!!