October 25, 2008
Bangkok - World financial crisis will surely affect Thai economy. The impact will be felt since the end of this year onwards, according to Siam Commercial Bank (SCB).
Mrs. Kannikar Chalitaporn, SCB Plc president, said the US financial crisis affected world economic condition and Thailand would start absorbing the impact since this year-end onwards.
The impact would clearly be felt during 2009-2010.
It was expected business sector would be able to sell products less and export sector would grow less due to major importers’ economies.
Thailand’s major export markets are the United States, European Union and Japan.
The domestic consumption would also slow down. As a result, there would be debt repayment problem since non-performing loans tended to rise more.
SCB told its customers to carefully consider any investment expansion. They were asked to delay their loan borrowing if possible.
The bank is ready to serve customers who will turn to borrow loans from domestic instead of foreign banks.
The loan interest tends to drop in line with world market. How much change in interest depends on the Bank of Thailand’s signal.
