BANGKOK, 14 Nov 2014 – The Bank of Thailand (BoT) has reaffirmed that Thailand’s economy is still stable, but discouraged the Government from issuing a stimulus package that puts people in extra borrowings.
The comment was made by BoT spokesperson Jirathep Seniwong Na Ayutthaya, in his reply to a concern made by Standard and Poor’s regarding Thailand’s less-than-optimum economic performance which may affect the credibility of the nation’s financial institution.
He affirmed that the kingdom’s economy is still stable and its financial institutions still function normally, with the Q3 Non-Performing Loans standing at 2.34%, a slight increase from the 2.15% at the end of last year.
The figures indicate that the nation’s commercial banks remain strong. The spokesperson expressed his concerns over the household debts now standing at 83.5% of the GDP, saying that the number is alarmingly high but would not hinder the nation’s economic recovery progress.
He said the household debt rate already shows signs of decline, and the trend should continue if the nation’s economy sustains a recovery rate. Nonetheless, Mr. Jirathep said that the household debt figures should discourage the Government from issuing policy that favors more borrowings.
