Larger number of requests for credit reports from NCB

[Lite Beer]

Larger number of requests for credit reports from NCB

BANGKOK, 1 June 2014 (NNT) -- More and more Thais have asked for their credit reports from the National Credit Bureau (NCB), as commercial banks and financial institutions have become more vigilant on lending.

According to NCB Managing Director, Surapol Opassathien, nearly 120,000 people requested for credit reports in the first three month of 2014, compared to approximately 108,000 during the same period last year. Banks and financial institutions have raised their loan approval standards in order to prevent the number of non-performing loans from rising as a result of local economic slowdown.

Meanwhile, the number of loan accounts in the NCB database has increased by 7.97 per cent, equivalent to 71.5 million accounts, up from the 67.07 million reported at the end of March 2014.

-- NNT 2014-06-01

[cloudhopper]

Loan accounts up 8% in 2 months? That is a HUGE increase. And not good IMO.

[Costas2008]

Loan accounts up 8% in 2 months? That is a HUGE increase. And not good IMO.

Hope with the rice farmers being paid, this will go down.

Otherwise, we will see a big default percentage in the next year or so.

[NongKhaiKid]

I saw the President of the Rice Farmers' Association on Channel News Asia a couple of nights ago and he said unless the NCPO comes up with a workable alternative to the pledging scheme many farmers will be in financial trouble again in no time flat.

The fallout from the scheme has lasting consequences that won't be going away soon and isn't good news for the country.

Without being critical I wonder how many farmers thought the pledging scheme was all their dreams come true and have become dependent on the idea of continuous subsidies ?

[FangFerang]

I saw the President of the Rice Farmers' Association on Channel News Asia a couple of nights ago and he said unless the NCPO comes up with a workable alternative to the pledging scheme many farmers will be in financial trouble again in no time flat.

The fallout from the scheme has lasting consequences that won't be going away soon and isn't good news for the country.

Without being critical I wonder how many farmers thought the pledging scheme was all their dreams come true and have become dependent on the idea of continuous subsidies ?

Your post is understandable, except for one issue that was neglected. Most Thais live month-to-month, and the delay in payments created this hardship, not the subsidy itself. Just enough time passed before payment that the loan sharks scooped up all the increased dividends.

I find it hard to believe this was coincidental. Actually, I do not believe it at all.

TIT

[Valentine]

I saw the President of the Rice Farmers' Association on Channel News Asia a couple of nights ago and he said unless the NCPO comes up with a workable alternative to the pledging scheme many farmers will be in financial trouble again in no time flat.

The fallout from the scheme has lasting consequences that won't be going away soon and isn't good news for the country.

Without being critical I wonder how many farmers thought the pledging scheme was all their dreams come true and have become dependent on the idea of continuous subsidies ?

Your post is understandable, except for one issue that was neglected. Most Thais live month-to-month, and the delay in payments created this hardship, not the subsidy itself. Just enough time passed before payment that the loan sharks scooped up all the increased dividends.

I find it hard to believe this was coincidental. Actually, I do not believe it at all.

TIT

The sharks & other lenders probably scooped up a fair bit of land too as land papers are generally required to secure loans. This could well have been part of the overall plan aside from increased profits on fertilizer when the prices were increased just to name one more of many examples.

[cloudhopper]

I saw the President of the Rice Farmers' Association on Channel News Asia a couple of nights ago and he said unless the NCPO comes up with a workable alternative to the pledging scheme many farmers will be in financial trouble again in no time flat.

The fallout from the scheme has lasting consequences that won't be going away soon and isn't good news for the country.

Without being critical I wonder how many farmers thought the pledging scheme was all their dreams come true and have become dependent on the idea of continuous subsidies ?

Your post is understandable, except for one issue that was neglected. Most Thais live month-to-month, and the delay in payments created this hardship, not the subsidy itself. Just enough time passed before payment that the loan sharks scooped up all the increased dividends.

I find it hard to believe this was coincidental. Actually, I do not believe it at all.

TIT

Yes certainly the delay caused hardships - hardships made far worse by higher costs of everything subsidy-related. All attempts to artificially influence a market - be they subsidies, tariffs, wage and price controls, hoarding etc. are all doomed to failure as the resulting price distortions reduce the ability to invest surplus capital properly. I suspect the central bank has already fired up the presses in an attempt to mitigate the looming defaults.

[marinediscoking]

Why do you people keep blaming the "rice scheme" for the increase price of fertilizer? After last yeas increased minimum wage EVERYTHING went up in price in this country. From my experience on the rice farm my ex-wife's family made their own which I would gather many others did also. They also did not live "month to month" they lived "harvest to harvest" like all farmers.

If all you "Military Dictatorship groupies" want to blame an increase of prices, why aren't you taking about wage increase?

[1plumber]

Why do you people keep blaming the "rice scheme" for the increase price of fertilizer? After last yeas increased minimum wage EVERYTHING went up in price in this country. From my experience on the rice farm my ex-wife's family made their own which I would gather many others did also. They also did not live "month to month" they lived "harvest to harvest" like all farmers.

If all you "Military Dictatorship groupies" want to blame an increase of prices, why aren't you taking about wage increase?

I guess I consider myself in favor of the present military situation. I do however take offense to the groupie label. (just kidding) But yes I agree with you that this min wage deal was a bad idea in the first place and I thought it was fuel for inflation the day I heard of it. I would also speculate that the rice scheme has had a snow ball effect in the same way. People "know" (in theory) that the farmers are being paid an inflated price so most things regardong agri. with increase as well. This is like the feds in the US paying farmers to grow corn to make bio-fuel. Less supply for cattle to eat, beef prices soar. The govt has no business in business.

[marinediscoking]

I am not a fan of subsidies either but the thai rice farmers have been under foot of the few families that control the rice trail out of the north for decades and something needed to be done. Abhisit's plan was a joke and helped no one, I guess next season those families will be happy again for the status quo and farmers wondering why even bother.

[robblok]

Why do you people keep blaming the "rice scheme" for the increase price of fertilizer? After last yeas increased minimum wage EVERYTHING went up in price in this country. From my experience on the rice farm my ex-wife's family made their own which I would gather many others did also. They also did not live "month to month" they lived "harvest to harvest" like all farmers.

If all you "Military Dictatorship groupies" want to blame an increase of prices, why aren't you taking about wage increase?

Everyone knows the wage raise an other ill conceived vote buying project raised the prices a lot.

Now first off I am not against a wage raise as it was needed, but by going up that fast 50-60% and then expecting prices to stay the same is stupid. I cannot believe that the government did not see that coming.

This government screwed everyone over now lets see what the junta does.

[HUAHIN62]

Loan accounts up 8% in 2 months? That is a HUGE increase. And not good IMO.

Hope with the rice farmers being paid, this will go down.

Otherwise, we will see a big default percentage in the next year or so.

This is not the rice farmers (they borrow from loan sharks) these are the BKK middle class.

Of the 350 k graduates from last year 150 k won't get jobs this year, compared to last years stats of 60 k graduates that was unemployed in total. Most of the middle class and elites started to live as if there was no tomorrow (can look at the growth of private debt over the last 3 years). The savings rate fell and many borrowed money to buy second homes and cars. Now that the party has ended they are struggeling to adapt to reality. Interesting that the same trends are happening in the US - savings falling and debt rising.

The Thai economy depends heavily on exports, but world demand is down, so don't expect that to be the saviour. Tourism are down and won't reach the projected figures. Auto sales are down and with most people maxed out on their credit, there will be no growth. Tax collections are down and there would be a bigger budget deficit this year which means the "government" will have to borrow more money. However the last "government" bond sales was canceled because of a lack of interest. The "government" bonds thats sold in future will carry a higher interest rate to discount for the extra risk involved. The implication of this is that "government" bonds thats rolled over will have to refinanced at a higher interest rate, which inturn means that more of the budget must be used to pay debt back and less will be available to provide services with. Within a year the flood prevention scheme and the high speed train will be back on the table as this would be projects that could stimulate the economy and return some confidence in the economy/country.

FDI's will be down and inflows into the SET would be limited, which would put pressure of the Baht.

With the depreciation of the Baht imported inflation will increase. The effect of the present drought and forecasted El Nino at year end could see food prices increasing at a faster rate than the last 5 years.

A lesson to anyone, before you bring a freight train to a stop make certain that you have enought horse power to get it moving again.

[wwest5829]

Why do you people keep blaming the "rice scheme" for the increase price of fertilizer? After last yeas increased minimum wage EVERYTHING went up in price in this country. From my experience on the rice farm my ex-wife's family made their own which I would gather many others did also. They also did not live "month to month" they lived "harvest to harvest" like all farmers.

If all you "Military Dictatorship groupies" want to blame an increase of prices, why aren't you taking about wage increase?

I guess I consider myself in favor of the present military situation. I do however take offense to the groupie label. (just kidding) But yes I agree with you that this min wage deal was a bad idea in the first place and I thought it was fuel for inflation the day I heard of it. I would also speculate that the rice scheme has had a snow ball effect in the same way. People "know" (in theory) that the farmers are being paid an inflated price so most things regardong agri. with increase as well. This is like the feds in the US paying farmers to grow corn to make bio-fuel. Less supply for cattle to eat, beef prices soar. The govt has no business in business.

While acknowledging governments have made mistakes, I think you go too far in saying government has no business in business. Want to refine your thought? Or do you truly believe gov't regulation of health, working conditions, wages should return to the good old days of 1850's industrial revolution Europe?

[seajae]

I am not a fan of subsidies either but the thai rice farmers have been under foot of the few families that control the rice trail out of the north for decades and something needed to be done. Abhisit's plan was a joke and helped no one, I guess next season those families will be happy again for the status quo and farmers wondering why even bother.

abhisit was paying them a higher then average price for their rice and it was being paid directly to them, no waiting for months on end and you think it was a joke, why then did so many farmers state they wished they had of stayed on it, the majority were just too greedy and over extended themselves in the hope of making a killing at the thaksin promised price(if he had of actually paid it). When farmers turn around and say they dont want to eat their own rice due to all the chemicals they had to use to plant multiple crops there is a problem that needs to be fixed. The only way out is to stop the rice scam, let farmers go back to their normal crops, less chemicals needed, no waiting to be paid and no thaksin bullsh*t to worry about. What would work better would be the general making a law so that the "land barons" will not be able to rip off the farmers any more especially when they are thaksins mates and mostly red supporters at that. Set prices for leasing etc so they cant just ask too much, they need to come back to realistic prices so that farmers can actually make a profit from their work. Instead of blaming everyone else the farmers need to wake up to themselves and try to be a bit more realistic instead of waiting for someone to do a bit of pork barreling again to win them over.

[noitom]

<script type='text/javascript'>window.mod_pagespeed_start = Number(new Date());</script>

I saw the President of the Rice Farmers' Association on Channel News Asia a couple of nights ago and he said unless the NCPO comes up with a workable alternative to the pledging scheme many farmers will be in financial trouble again in no time flat.

The fallout from the scheme has lasting consequences that won't be going away soon and isn't good news for the country.

Without being critical I wonder how many farmers thought the pledging scheme was all their dreams come true and have become dependent on the idea of continuous subsidies ?

Handouts instead of hand ups

[bigbamboo]

Loan accounts up 8% in 2 months? That is a HUGE increase. And not good IMO.

Hope with the rice farmers being paid, this will go down.

Otherwise, we will see a big default percentage in the next year or so.

This is not the rice farmers (they borrow from loan sharks) these are the BKK middle class.

Of the 350 k graduates from last year 150 k won't get jobs this year, compared to last years stats of 60 k graduates that was unemployed in total. Most of the middle class and elites started to live as if there was no tomorrow (can look at the growth of private debt over the last 3 years). The savings rate fell and many borrowed money to buy second homes and cars. Now that the party has ended they are struggeling to adapt to reality. Interesting that the same trends are happening in the US - savings falling and debt rising.

The Thai economy depends heavily on exports, but world demand is down, so don't expect that to be the saviour. Tourism are down and won't reach the projected figures. Auto sales are down and with most people maxed out on their credit, there will be no growth. Tax collections are down and there would be a bigger budget deficit this year which means the "government" will have to borrow more money. However the last "government" bond sales was canceled because of a lack of interest. The "government" bonds thats sold in future will carry a higher interest rate to discount for the extra risk involved. The implication of this is that "government" bonds thats rolled over will have to refinanced at a higher interest rate, which inturn means that more of the budget must be used to pay debt back and less will be available to provide services with. Within a year the flood prevention scheme and the high speed train will be back on the table as this would be projects that could stimulate the economy and return some confidence in the economy/country.

FDI's will be down and inflows into the SET would be limited, which would put pressure of the Baht.

With the depreciation of the Baht imported inflation will increase. The effect of the present drought and forecasted El Nino at year end could see food prices increasing at a faster rate than the last 5 years.

A lesson to anyone, before you bring a freight train to a stop make certain that you have enought horse power to get it moving again.

At least those unemployed but frightfully well educated Thai graduates will be able to obtain work in other ASEAN countries soon.