GH Bank vows steady interest rates

GH Bank vows steady interest rates

Government Housing (GH) Bank plans to keep its mortgage interest rates steady until the middle of this year after a rate hike earlier this year, says president Chatchai Sirilai.

The bank's average interest rate is the minimum retail rate of 4.25% per year following an increase of 0.25 percentage points earlier this year.

This rate hike was its first since the US Federal Reserve started its gradual rate increases in the middle of last year.

Mr Chatchai said Thailand has managed its interest rate policy well, considering the local economic environment and not following the movement of global rates.

He said GH Bank's rate hike did not have a serious impact on its loan extension, though it did affect those seeking huge loan amounts.

As of March 15, the bank has extended total loans worth 37 billion baht.

The bank's non-performing loans (NPLs) rose by 4 billion baht in January this year and by another 700 million baht in February.

Its total NPLs tallied 4.11% of total outstanding loans last month.

GH Bank's total NPLs are expected to rise to 4.25% of its total outstanding loans at the end of this year.

The bank also plans to sell non-performing assets (NPAs) worth 10 billion baht this year, said Mr Chatchai.

GH Bank signed a memorandum of understanding with Sukhumvit Asset Management (SAM) on Thursday, with GH Bank agreeing to offer low-interest loans to customers seeking loans to buy SAM's NPAs.

Loans for this collaboration total 800 million baht.

The interest rate is the minimum retail rate minus 2.60% during the first three years, with an instalment payment period of 40 years.

The loan application period runs until Dec 20, 2024.

The bank is ready to expand the loan amount if it is warranted, he said.


Do you like the content of this article?
COMMENT

Srettha denies rumoured 'secret deal' to usurp MFP

Srettha Thavisin, one of Pheu Thai's three prime ministerial candidates, on Monday denied in a tweet rumours about a "secret deal" to form another coalition led by the Pheu Thai.

05:22

Stage set for speaker showdown

The Pheu Thai Party is still locking horns with the Move Forward Party over the House Speaker position, insisting the position be filled by one of its candidates ahead of a scheduled meeting today to thrash out a solution to the dispute.

04:10

China to send first civilian astronaut to space station

JIUQUAN (CHINA) - China will send three astronauts to its Tiangong space station on Tuesday, putting a civilian scientist into space for the first time as Beijing pursues plans to send a manned mission to the Moon by the end of the decade.

03:55