SCB chief warns of US economic uncertainties

BANGKOK, Sept 23 (TNA) – The Thai economy shows clear signs of improvement, but will not recover rapidly since the United States economy remains uncertain, according to a top Bangkok banker.

Siam Commercial Bank president Kannikar Chalitaporn said although the economy began to pick up clearly for this moment, it would be pressed by the US economic uncertainties fueled by the high unemployment of up to 10 per cent.

While Thailand’s exports had increased in value, she said, the volume had not edged up.

An increase in purchase orders stemmed from the order placement of products to rebuild stocks rather than a greater demand for goods because consumption in the US had not increased markedly.

Mrs Kannikar said she expected loans extended by the bank would grow only 3 per cent, the lowest level targeted earlier at 3-5 per cent, since loans extended in the first eight months of this year still shrank.

However, she believed the loans, particularly revolving credit and short-term credit as well as loan support for state investment projects, would recover considerably while non-performing loans (NPLs) stay at 4.7-5 per cent.

She said SCB forecast the Thai economy would expand around 3-4 per cent next year. Still, the bank had not yet prepared its business plan and goals.

Siam Commercial Bank was established by royal charter in 1907 as Thailand’s first bank (TNA)