NPL of SMEs continues rising

BANGKOK. July 15 (TNA) -- Non-performing loans (NPLs) of small-and-medium enterprises (SMEs) continue increasing and stood at 4.35 per cent or one-third of loans given by commercial banks in Thailand at the end of first quarter this year, said Jaturong Jantarangs, assistant governor of Bank of Thailand’s Monetary Policy Group. There is still no sign that whenNPLs of SMEs would cease from rising because most of them are encountering debt payment and business competition problems, said Mr Jaturong. Because of these problems, some SMEs have to close their businesses, he said, adding that he was confident commercial banks would be able to survive because of their sufficient cash reserves. However, the Monetary Policy Group wants the public to closely monitor the problem of household debt, especially on its debts outside the financial institutions, said Mr Jaturong. As for the BoT's plan to issue new regulation to control personal loan through a credit card, Mr Jaturong said the control would only affect new credit card applicants. The BoT finds that spending through the credit card would stimulate the country’s economy only in short-term as card holders are spending future money, he said. Inflation is projected to increase about one per cent, probably during either the final quarter this year or early 2018, he added. (TNA)