BANGKOK (NNT) – The Bank of Thailand (BoT) has discussed, with relevant authorities, ways to lower the country’s household debt, which includes borrowing from financial institutions and other loan sources, including those that are not under the BoT’s supervision.

BoT assistant governor Thanyanit Niyomkarn said, in the initial stage, the BoT intends to focus on government agency-related household debt, starting with co-operatives and student loans, with the aim of expanding to cover farmers’ loans next year.

She said the central bank plans to hold discussions with the teacher co-operatives, police co-operatives and the Student Loan Fund to identify debt solutions for borrowers. Moreover, the bank will help design the debt repayment structures of these organizations, in line with income, debt burden and other related factors of each borrower group.

Thanyanit said the BoT also aims to expand its cooperation with the Bank for Agriculture and Agricultural Cooperatives (BAAC) to reduce farmers’ debts, while implementing several debt relief and debt restructuring programs, to help retail and small and medium-sized enterprise (SME) borrowers who are suffering from the COVID-19 outbreak.

According to the BoT, Thailand’s household debt in the first quarter of this year increased to 14.1 trillion baht, or 90.5% of gross domestic product (GDP). Household debt was largely made up of commercial banks representing 43% of total debt, followed by specialized financial institutions at 29%, co-operatives at 15% and others at 13%.

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BANGKOK (NNT) – The Asian Development Bank (ADB) has revealed that Asia’s economic growth this year will be slightly lower than previously projected, citing the resurgence of COVID-19 infections.

The ADB said recovery is underway in the bank’s 46 members, including China and India, but growth was revised down to 7.2%, from 7.3% projected in its Asian Development Outlook (ADO) report released in April.

ADB Chief Economist Yasuyuki Sawada said Asia and the Pacific’s recovery from the COVID-19 pandemic continues, although the path remains precarious amid renewed outbreaks, new virus variants and an uneven vaccine rollout.

In Southeast Asia, the ADB revised 2021 growth forecasts to 4.1% from 4.5% for Indonesia; 2.0% from 3.0% for Thailand; 5.5% from 6.0% for Malaysia; and 5.8% from 6.7% for Vietnam.

For 2022, the ADB maintained its growth forecasts for most Southeast Asian economies: 5.0% for Indonesia, 5.7% for Malaysia, 5.5% for the Philippines, 4.1% for Singapore, and 7.0% for Vietnam. But it raised the growth projection for Thailand to 4.9% for next year from 4.5%.

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BANGKOK (NNT) – The Ministry of Commerce has reported that Thailand’s rubber exports shot up by over 50%, year on year, during the first five months of 2021.

According to the ministry, exports were valued at THB70.34 billion, an increase of 50.80% from the same period last year, when it was valued at 46.65 billion baht. Export volume increased to 1.39 million tons, from 1.17 million tons during the same period last year.

Meanwhile, the Thai Rubber Association’s honorary president Lakchai Kittipol revealed that the substantial growth in rubber exports was due to the low export base last year, while the economy around the world is starting to recover and many countries are placing more orders.

He said the price of rubber exports this year was higher than last year. Exports continue to expand, but at a lower rate, because trade partners have already bought some of the stock. Value-added exports, this year, are expected to grow at least 25%, due to improvement in the world economy as compared to last year.

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BANGKOK (NNT) – The Office of the Insurance Commission (OIC) has issued a directive barring insurance companies from canceling active COVID-19 insurance policies, following yesterday controversial decision by one a firm to terminate COVID-19 insurance packages they have been offering.

The Office of the Insurance Commission (OIC) yesterday issued a directive prohibiting insurance companies offering COVID-19 insurance packages in Thailand from terminating active contracts already held by their clients.

The decision was made following an announcement of insurance contract termination by the firm Syn Mun Kong Insurance, telling clients their COVID-19 insurance packages with the firm will be terminated within 30 days.

The OIC Secretary General, Suthiphon Thaveechaiyagarn said the office disagrees with the firm’s decision as doing so is considered taking advantage of customers, while the firm has never given notice to the OIC as the regulator.

The OIC has instructed Syn Mun Kong to continue honoring the contracts already in existance, allowing existing customers to file claims according to their cover. While the company may consider discontinuing such offers to new customers if they wish, it may not terminate contracts held by existing ones.

Mr Suthiphon said the OIC, as the registrar, can still enforce a lawful mandate against Syn Mun Kong, forcing them to pay claimed compensation according to existing contracts.

The OIC’s directive yesterday, is applicable to all insurance firms offering COVID-19 insurance packages, effectively waiving an insurance company’s right to terminate a contract.

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