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GSB satisfied with one-year performance of People’s Bank
The Government Savings Bank yesterday expressed
satisfaction with the one-year performance of its People’s Bank program,
saying it could extend 5.01 billion baht in loans. Missed repayments of
more than three months would represent only 1.3% of the total loans
provided.
Chanchai Musiknisakorn, director of GSB, said
People’s Bank’s performance over the last 12 months was satisfying,
although some improvements still need to be made.
Total loans provided by the bank up to June 14 were
5.01 billion baht with 341,106 borrowers out of 393,591 applicants for the
loans. Total deposits were 1.34 million baht. Missed repayments of more
than three months amounted to 70 million or 1.3% of the total loans
extended, or 2.81% of the outstanding loans as of April 10.
“Members of the program who failed to repay debts as
scheduled are mostly customers who do not have their own market stalls or
those whose income is not enough for spending. The bank will try to
collect the overdue debt amount first. Still, it will take legal action if
a missed repayment exceeds 5,000 baht,” Chanchai said.
Chanchai also defended the bank’s charge on minimum
lending rate of 1% a month, saying the rate was justified given its
present operating costs. Considering the loan of 15,000 baht is extended
per head, the bank can gain an interest margin of 341 baht based on the
monthly MLR of 1%. The margin would be used for the personnel cost and
life insurance coverage for borrowers. (TNA)
AAT share likely to be 40-50 baht when listed on SET
Prices of the Aviation Authority of Thailand’s shares
are expected to be in the range or 40-50 baht when the stocks are listed
on the Stock Exchange of Thailand in November as part of its privatization
plan.
Speaking a board meeting AAT Plc, governor ACM Terdsak
Sajjaruk said a financial advisor for the plan would finalize the fixing
of the registered capital of the new company sometime in July.
The board now holds meetings every Wednesday to
accelerate finalizing AAT’s fund mobilization plan, scheduled for
completion this month. The authority will conduct a public hearing within
the month.
Terdsak said the plan to set up AAT Plc remains in
place and the new company will be registered in August, followed by the
public offering of shares in October and the listing of the shares on SET
in November.
The authority’s assets as of the end of September
last year stood at around 41.7 billion baht. Its equity totaled 33.61
billion baht once the liabilities were subtracted.
It is expected the new company’s registered capital
will stand between 15-20 billion baht. Since the capital and the number of
shares to be listed on SET are considerable, its share prices are unlikely
to be very high. Shares are expected to trade on the SET late this year. (TNA)
Stability and strong fundamentals key to economic growth
Efforts to ensure the stability and sustainability of
the economy and to strengthen its fundamentals should be given greater
importance than attempting to boost continued growth of the economy,
according to Kosit Panpiumrat, executive chairman of Bangkok Bank Plc.
Kosit said it’s vital to strengthen the economic
system to sustain its growth. The leading banker said that continued
growth of the economy is not the most significant issue.
Priority should be given to the efforts to boost the
stability and sustainability of the economy and to strengthen its
fundamentals, particularly the country’s competitiveness.
He went on to explain, “Should fundamentals remain
weak, economic growth could be uncertain. Key indicators of economic
weakness include trade deficit or declined trade surplus,” he explained.
“Bangkok Bank is now analyzing economic data to
revise the economic growth projection after the National Economic and
Social Development Board revealed that gross domestic product grew at an
impressive rate in the first quarter of this year,” Kosit said.
“It is likely the bank will make an upward revision
of the growth estimate. A final conclusion is expected soon,” he said.
Asked to comment on commercial banks’ competition to
provide credit card services Kosit said the criteria imposed by the Bank
of Thailand on the card issuing is not a key issue. All banks are in the
position to comply with it. He said what should be of concern is
overspending by credit card holders. He said card issuers and holders must
have a common understanding that spending and repayment should be
balanced, otherwise a debt problem would follow. (TNA)
Nation’s new franchise bill to be drafted soon
The Department of Internal Trade is gearing up to draft
a franchise bill to set the guidelines for franchising and to promote Thai
franchise expansion.
Siripol Yodmuangcharoen, director-general of the
Internal Trade Department said that the franchise bill is being drafted to
outline the operation of foreign and domestic franchise businesses,
investment, and chain expansion.
The new law won’t be restrictive to foreign
franchisers but it will contribute to the fairness for all franchisers and
franchisees and will lead to continuing growth and stability of the
franchise business.
Siripol said that the bill will stipulate that
franchisers must register with the Internal Trade Department and disclose
their financial performance and information on royalty fees and their
balance sheets. Moreover, the bill will include provisions for the
business contract between franchisers and franchisees.
The director-general said it has taken about four
months to draft the bill. Officials were dispatched to Geneva to attend a
meeting titled “Franchise Business Law”.
The department also asked the Thai trade envoys in
various countries to send information about franchise laws and regulations
so that the information can be adapted for use in Thailand.
“Up until now there is has been no law in Thailand
that directly enforces franchise businesses. The usual practice has been
left to civil law contract,” said Siripol.
In the next five years, insiders predict that
franchisers will increase about 25% and franchisees 30%. (TNA)
Budget celebrates grand opening of their new branch on Beach Road
Budget Car and Truck Rental recently celebrated the
grand opening of the new Budget Car and Truck Rental branch in Pattaya.
The new office is located at Tipp Plaza on Beach Road near the Pattaya
police station. The previous office was on Soi Diana.
Wanchai
Tangpanichdee, managing director (back row, 3rd from right), Anawan
Prachasaisoradej, operations manager (back row 4th from right) and Warith
Trirapun, board committee (back row 5th from right) along with executives
and staff celebrated the grand opening of the new Budget branch on Beach
Road.
Wanchai Tangpanichdee, managing director, Warith
Trirapun, board committee, Anawan Prachasaisoradej operations manager,
staff and honored guests attended the grand opening ceremony.
Anawan Prachasaisoradej, operations manager of the head
office said the new Budget office is the 24th branch in Thailand and the
only branch in Pattaya.
Thongchai Na Ampai, duty manager has been assigned to
the new office.
Budget Car and Truck rental offers 24-hour service as well as a 24-hour
help line, free delivery and one-way rental. For information telephone 038
710 717, fax 038 710 720 or visit the website www.budget.co.th
Ministry of Finance says Thai economy set for growth cycle
The Thai economy is set to enter into a growth cycle,
boosted by the government’s comprehensive economic stimulus measures, as
could be witnessed by a higher-than-targeted revenue collection.
According to a senior official at the Finance
Ministry’s Fiscal Policy Office, Somchai Satchapong, director of the
Fiscal Policy and Planning Division, the ministry’s revenue collection
in the past eight months of the fiscal year (October 2001-May 2002)
exceeded the target by 50.89 billion baht or 8.7% of the set collection of
823 billion baht.
The ministry is very confident that its revenue
collection for this fiscal year would exceed the target by 36.5 billion
baht or 4% of the set collection.
Of the excess amount, 21.6 billion baht was collected
by the Revenue Department and 14.6 billion by the Excise Department. The
higher-than-targeted collection indicates signs of a recovery in
consumption, investment, production and property businesses.
This showed the country to be in a growth cycle in the
wake of the government’s successful efforts to stimulate the economy at
a grass-roots level, encourage lending to small and medium-size
enterprises, rehabilitate the property sector, and give the ailing economy
a jump-start through a 58-billion-baht stimulus budget.
Somchai said the collection of excise tax on durable
goods, including motorcycles, vehicles and electrical appliances, in May
exceeded the target by 48%, 27.4% and 19% respectively. More consumers
decided to buy these kinds of durable goods because they have confidence
in the country’s overall economy, he said. (TNA)
Cassava exports look promising in Asian markets
Asian countries, particularly China, have expressed
interest in importing cassavas from Thailand to use in the production of
animal feed, a senior official at the Foreign Trade Department said.
Thammanoon Chiewsakul, the department’s director-general, said Thailand
managed to export a record high of 4.68 million tons of cassava products
last year, an increase of 44.28% from the previous year.
He attributed the record rise to the adoption of the
strategy to promote exports of cassava to the People’s Republic of
China. It resulted in local prices of raw cassava increasing to 1-1.20
baht per kilo from around 65-80 satang per kilo.
To ensure market and price stability, the Commerce
Ministry has coordinated efforts with the private sector and academics to
develop the quality of cassava products. They also plan to launch a
promotion campaign to seek more market share within existing destinations
and penetrate new export markets.
Thammanoon said the department has tried to upgrade the
quality of cassava products to meet the needs of consumers both locally
and overseas. At the same, it is receiving cooperation from academics from
Kasetsart University in holding training for cassava growers.
A trade delegation comprising representatives from the
public and private sectors as well as academics recently visited the
Philippines and China to promote the use of cassava as a raw material for
animal feed production. Pig raisers in the Philippines have expressed
interest and affirmed they would call on their government to reduce import
tariffs on cassava products to 10% from 40%. (TNA)
Efforts to improve economy bear fruit
Prime Minister Thaksin Shinawatra said his
government’s efforts to solve the economic problem at the grass-roots
level have improved the country’s economy despite the global economic
slowdown.
Speaking at an annual seminar on ‘Living Conditions
of Thais in Five Years after the Economic Crisis’ held by the National
Economic and Social Development Board, he said his government has adjusted
its economic management approach. It shifted focus on depending on foreign
investment and production for export to stimulating the local economy from
within.
With the adjustment, the country’s ailing economy
began to recover in the fourth quarter of last year although the global
economy was adversely affected by the tragic terrorist attacks in the
United States on September 11. More important, the economy registered a
remarkable growth of 3.9% in the first quarter of this year.
However, he admitted a slight decline in
competitiveness has emerged. Many are concerned about the fall in export
value even though the export volume has increased.
Thaksin said the NESDB is on the right track. He said
this will lead to more efficient development for the nation, and praised
it for its effort to stress human resources development and public
participation.
The PM acknowledged that national and economic
development must be balanced. He said that enhancement of knowledge and
exchange of information and views from the global marketplace should be
encouraged.
The premier acknowledged the difficulties in
implementing key policies such as the One-Tambon, One-Product program,
debt suspension for farmers, and universal health scheme because they are
in the start-up stage. He believes efforts to implement these polices will
show positive results soon. (TNA)
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