BOT reveals that the number of loan defaults increase

[webfact]

BOT reveals that the number of loan defaults increase

BANGKOK, 29 April 2014 (NNT) - According to the Bank of Thailand (BOT), the number of people defaulting on their loans has reached up to 2.4 percent during three months of this year.

Salini Wangtan, an assistant governor for the BOT, declared that loan borrowers have been falling behind on their debt payments and some have failed to repay their loans due to the economic downturn in the country. Up until now, at least 2.4 percent of people have not paid off their loans during the first quarter of this year, which is a 0.1 percent increase from last year.

Despite the fact that people have defaulted on their loans, Ms. Salini stated that she is not too concerned as she believes that the current economic situation makes it difficult for many people to cope with their financial expenses. However, the problem is far from serious for commercial banks to handle at this point.

Commercial banks also have a policy to take care of their debtors by following up on their financial status and providing assistance measures such as allowing the option to defer debts to be paid at a later time. Ms. Salini went on to say that banks have also been very careful by increasing their provision for loan losses by up to 157 percent. Therefore, she is not too concerned whether the loan defaults would impair the credibility of the banks.

Lastly, she stated that the number of people taking out loans this year has decreased to 9.8 percent compared to the fourth quarter of last year, which stood at 11.34 percent.


-- NNT 2014-04-29

[clockman]

Yes, and that is why. Loan sharking is a growth industry in Thailand! Big trouble coming.

[Costas2008]

Exactly what happened to Europe and the USA.

Banks used to give loans to everybody that asked, but at the end people could not pay back.

The same thing is happening here.

And it's still early days, the situation will get worst and many people will suffer.

Thai people just started realising that it wasn't free money given to them.

[Pib]

I wouldn't call a 0.1% increase from 2.3% to 2.4% as signaling a financial disaster is just around the corner. In fact, I would say the 0.1% change is insignificant...surprised it's not higher...and what if the more exact percentage was 2.34 which rounds to 2.3 or 2.36 which rounds to 2.4 then we are talking an insignificant rounding event. But it did allow a news story for a reporter to help meet his/her weekly news quota.

[chainarong]

Possibly time has caught up with some of the rice farmers.

[DrTuner]

I have a friend who started ranting about the bubble bursting in the US. He started spelling doom in 2002, six years ahead. I'll give Thailand the same six years, sounds vaguely familiar. It takes time for bubbles to burst.

[bubblegum]

Bubblegum says the Bubble will Burst not long after China's economy goes. So that's a year or 2.

[Eloelo]

2015 will see so much financial destruction world wide, musical chairs on a grand scale on who is going to get caught on all this imagined wealth through debt, the bank is not worried now of course, they are not worrie because governments are guaranteeing the loans..people were riding high in 2007 just before the first shockwave came..the governments have only delayed the inevitable,.deleveraging is going on In a massive scale at the moment.the world cant pay back its debts why would you think a farmer can pay his and so on..

[marko kok prong]

BOT,TAT ,TUT,CAPO,have some great names here!