Loan demand likely to pick up in 2nd half

BANGKOK, Aug 18 (TNA) – The demand for loans is expected to pick up, particularly in Thailand’s agricultural sector, in the second half of this year since the season for stocking farm products has come, according to a top banker.

Kasikornbank Senior Executive Vice President Pakorn Pantanapaet said the loan demand for working capital would normally increase during this season. The demand could offset a shortfall in loans extended since the beginning of the year.

In addition, he said, the government-supported economic stimulus package would greatly benefit small- and medium-size enterprises (SMEs), especially those in the contracting sector.

“The bank has approved loans in an amount of around 10 billion baht per month. But the loan drawdown is rather small. We expect the loans will resume a positive growth in the 3rd-4th quarters after they shrank 3 per cent in the first quarter and grew only 3 per cent in the second quarter.

“The low interest rate at present can help reduce costs for entrepreneurs,” Mr. Pakorn said. “But above all, the government must be stable and able to disburse budget to stimulate the economy.”

Mr. Pakorn said that non-performing loans (NPLs) incurred by Thailand’s SMEs remain in a manageable range of no more than 4 per cent, and that the overall amount of NPLs had begun stabilising recently. (TNA)