|
|
| • EXCH RATES |
|
Baht/$ 34.95/00 (Bid/Ask)
|
GOLD |
12450
-100
|
|
ECONOMY
PHUSADEE ARUNMAS
Debts in the unorganised money market - including money owed to loan sharks - are set to rise, as a poor economy and tight credit practices by financial institutions affect Thai wallets, a survey warns.
The survey by the University of the Thai Chamber of Commerce found public consumption has been frozen and people had started using their savings in light of shrinking incomes and costlier product prices.
"Given the poor economy, political instability and the impact of the world financial crisis, deposits in the banking system have dropped from over 1.5 trillion baht to about one trillion or lower, leading banks to tighten their credit lines to the public," said Thanavath Phonvichai, an economist at the university.
Currently, debts in the unorganised or informal sector represent about 20% of all credit outstanding in the country and are worth eight trillion baht.
Mr Thanavath suggested the government come up with new measures to prevent the public from relying on loan sharks and other similar sources. he said better use could be made of the lending mechanisms of state-owned banks such as the Government Savings Bank and the Bank for Agriculture and Agricultural Co-operatives.
"We're afraid social and criminal problems will heighten if the government does nothing to prevent such high-interest borrowing," he said.
Mr Thanavath added that the government's accelerated plans to invest in infrastructure such as mass rapid transit and energy projects by issuing bonds to raise funds onshore would result in tighter financial liquidity and eventually affect households and businesses.
In a related development, the survey found the Loy Krathong festival on Nov 12 is expected to be active, with 72.3% of 1,194 respondents saying they wanted to float away their problems. The concerns mentioned most were the ongoing political conflict, the poor economy, crime, drugs, and corrupt politicians.
Per capita spending during the festival is estimated at 1,149 baht, an increase from 816 baht last year.
Prev
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
Next
