“Calculation changes”… double the Government Housing Bank’s NPLs !

A new calculation method has doubled the Government Housing Bank’s non-performing loans (NPLs) to 11.84% of total outstanding credit at the end of June, bank president Khan Prachuabmoh said yesterday.

[…]

At the end of June, GH Bank had a total outstanding loan of 582.74 billion baht, up from 577.24 billion at the end of 2007. Its NPLs totalled 68.99 billion baht, or 11.84%, up from 5.51% at the end of December.

In the first half, the bank released a total of 34.52 billion baht in new housing loans to 49,002 accounts, down by 37% year-on-year due to the economic slowdown, higher inflation rates and living expenses and fluctuating interest rates. (Bangkok Post)

Another perfectly normal day in Wonderland… Where NPLs come and go, depending of some daily mood and “calculation changes“.

😉

Why they don’t say instead that NPLs are increasing… because the economic situation is worsening ? Too shy ?

People were pushed to go into debt to buy stupid pieces of real estate, at inflated prices, and now with inflation and higher rates… they can’t pay back in due time.

Let’s remember that the GHB is the “armed arm” of the government to provide cheap loans (with lower interest rates). It’s one of the master piece of the boiler room (the believers of “stimulus policies”…).

But what is really striking, beyond the ridicule of such announcement about “calculation changes“, is the 37 % drop of new housing loans

The boiler room is going to need to find some new amunitions…

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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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