BOT praises growth of loans… but is afraid about debts and inflation

The BOT continues like a running head-less chicken.

On day, growth of loans is a good sign, a sign of recovery. The day after, debts are a problem. Inflation can curb the ability of consummers and businesses to repay their debts.

Loans extended by commercial banks as a whole continued to grow 7.3 per cent in the first quarter of this year with the banks’ profitability improving, according to the Bank of Thailand.

BoT Deputy Governor Bandid Nijathaworn said total loans in the first quarter of this year had accelerated without interruption from that of the fourth quarter of last year.

The increase reflected rises in both consumer and business loans.

He said the increasing loans signaled a recovery of local spending. (TNA)

BOT’s concern over debt as inflation takes toll on consumers

Householders are becoming increasingly cautious on spending and borrowing as a result of surging inflation in recent months, which has put more pressure on repayments, the Bank of Thailand (BOT) says.

The BOT is closely watching rising external and internal risk factors, which could dampen the balance sheets of the non-bank private sector.

The central bank’s inflation report warned that if the inflation continued to gather speed over increases in incomes, householders’ ability to repay their debts would be seriously eroded.

Consumers were now more cautious about spending and borrowing as their living costs had surged because of inflation. That was evident by the slowdown in credit-card spending.

BOT assistant governor Suchada Kirakul said the risk of inflation remained with oil prices staying high, which was one of the key factors to be monitored. (Nation)

It’s a recurrent problem at the BOT : they let officials speaking, without any kind of coherence…

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Thailand Crisis

Coup, Economic slowdown, Terror In the South... The situation is worsening in Thailand. Bumpy road like often before.

But this time, it's different.

The key to understand the present turmoil is the inevitable... succession of King Bhumibol.

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