The Bank of Thailand insists not to raise interest rates until the end of the year 65, beware of 3 affected groups
Mr. Chatchai Sirilai Chief Executive Officer Government Housing Bank (GHB) It revealed that the Bank of Thailand will not raise interest rates on customer loans until the end of 2022, although the Monetary Policy Committee (MPC) Bank of Thailand (BOT) will raise interest rates. because the bank wants to lighten the burden of people according to government policy Even though the bank has lost more than 1,900 million baht in revenue
However, in 2023, the bank will gradually adjust interest rates according to the market. The installment schedule will be progressively adjusted over the course of the first quarter of 2023. It is expected that if the interest rate is increased by 0.25%, the bank’s customers will be affected by thousands of accounts. But if the interest rate is raised to 0.50%, tens of thousands of customer accounts will be affected. But the bank can still handle it. Due to a large group of customers who are affected By being a customer with a loan of less than 2 million baht, the repayment rate adjustment will not increase much.
However, when the interest rate has been raised There are 3 main groups of interested customers, namely new customers who can borrow with a lower limit. owed more interest already NPL and is undergoing debt restructuring which may have a higher installment charge and 3. current debtors who may have a higher debt repayment charge. because the rent is not enough to cut the principal and the interest
“Please understand that customers don’t panic when interest rates go up. And it is advisable to see what the loan agreement itself is. If it’s a fixed-rate loan agreement, like a million homes, it won’t be affected. Because the interest rate remains stable for up to 4 years, but if it is a bonded loan at the benchmark interest rate it can be affected For borrowers with high credit lines, however, the Bank of Thailand has a policy of taking care as much of the debtors as possible because they have already calculated more flexible installments than other banks. but low installments including loans with exchange that give the loan price more than the guarantee The bank fears that it is a group that cannot continue to pay the installment. The Bank of Thailand attaches great importance to this issue, “Chatchai said.
Mr. Chatchai said that while the bank’s loan performance, as of September 20, can be credited with over 197,000 million baht. Confident that the bank will be able to lend as planned this year. at 300 billion baht for sure while this year’s profit is confident of reaching the target set at 13,000-14,000 million baht and the Bank of Thailand has also adjusted its fundraising plan to issue loans during the interest rate increase.In the past, the Bank of Thailand has issued high interest deposit products for 18 months, bonds or lotteries to be issued.increased more than usual In order to lock the interest rate at a not very high level
while non-performing debt (NPL) increased by 10,000 million baht from 59,000 million baht to 68 billion baht or 4.41%. Such debtors can be contacted.
As for the progress of the request to the Ministry of Finance to extend the timeframe to reduce the amount of money sent to the development fund of the four state specialized financial institutions from 0.25% to 0.125%, which will end at the end of this year. The Ministry of Finance is ready to consider the question of whether it is beneficial to the people. While the trend in 2023 to follow is whether the loan will be as hot as this year or not. Including the trend of NPLs which has the potential to rise and interest rates which have yet to be observed
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