Tipping point: Banks recalling loans pose long-term threat to Phuket’s tourism recovery

[greeneking]

5 hours ago, izod10 said:

Not just the hotels etc, but the banks themselves,they will undoubtedly go tits up too,was one bank in serious trouble before covid.

 Id keep as little money in a Thai bank as i could now,it makes Cyprus look like small beer in comparison

“liability-management exercise”, an agreement to pay creditors somewhat less - sometimes called taking a haircut?

Anyone have any experience in trying this?  What kind of a discount might a Thai bank accept on having the loan paid up by a client whose income will never make the monthly payment any more?

[KarenBravo]

5 hours ago, izod10 said:

Not just the hotels etc, but the banks themselves,they will undoubtedly go tits up too,was one bank in serious trouble before covid.

 Id keep as little money in a Thai bank as i could now,it makes Cyprus look like small beer in comparison

Very much doubt that your alarmist, Chicken Little view will come to pass.

[Heppinger]

54 minutes ago, Kopitiam said:

I too have a story about a "orange" man in White House that caused the death of more than 150,000 people in the US.....

do you mean the NRA? or planned parenthood? 

Edited August 8, 2020 by Heppinger

[torturedsole]

14 hours ago, rooster59 said:

Tipping point: Banks recalling loans pose long-term threat to global recovery

I've tweaked the OP's header to suit my outlook.  

 

Let's expand to all banks globally as there's only so long they can wait for repayments then they're forced to seek recoverable assets.  It's harsh, particularly in the current climate, but it's reality.  The repayment holidays are coming to a sharp close and it's not going to be pretty.  

[Almer]

16 hours ago, digger70 said:

I like to see that the banks do that .

If they do Recall All loans The banks will be in trouble themselves, There's no hope in Hell that the Borrowers can pay if they don't have the Money/Jobs/ Tourists business to meet the payments.

What are the banks going to do if they Foreclose? They will have Thousands off Properties on the books that they can't sell. The banks will also Go Broke.

 

Correct, the banks will go belly up.

[robblok]

13 hours ago, DaftToPutRealName said:

Smart smart smart. Nothing wrong with loaning money out, but just like you wouldn't give a bloke you just met at the bar your credit card, you wouldn't do the same for a people who have a culture that is well known for taking and considering it a "gift" before hiding behind the loss of face and expecting you to do nothing about it.

I lend money out to someone who flips luxury goods - I go to the shop/import it in and buy them up with my capital, then she sells them off on the 2ndary market and pays it back with a bit of a bonus on top. Literally the only person who gets any $$$ out of this daftie.

Its a matter of trust you learn who you can loan to and who you cant. In case of the ex she has always been proven good. Never caved for her family always sided with me. So if she needs help ill be there. I have a long memory when people are good to me i return the favor.

[Cake Monster]

20 hours ago, Sharp said:

Exactly planning for a complete financial meltdown in your sector of business I've yet to see in any business plan ????

Whilst there are no actual Business Plans for a Financial Meltdown, there  is something called 'Being Prudent in your Business "

Yes, have a successful Business, which makes a good profit, live well and healthy, but do not take all the Money generated. Leave some every month for the bad times.

I have seen it all before ( not just in Thailand ) where somebody starts a Business of some kind, and within a Month or 2 are driving round in a new BMW or such like.

Taking the Holidays to expensive Destinations, where the previous Year it was Benidorm or Slapton Sands. Etc Etc Etc.

And Hey ! what do you know. The Business loses a Contract of importance, and within a Year of starting the Business, its Bust !

 

[DaftToPutRealName]

22 hours ago, Kopitiam said:

I too have a story about a "orange" man in White House that caused the death of more than 150,000 people in the US.....

Funny, because from what I remember we were told by the "experts" that masks didn't work, that closing the border to Chinese flights was "racist" and to go and enjoy chinese new year festivities.

That's before we look at how BLM protests magically cured this pandemic and all the "experts" told us we had to stay inside unless we were protesting. Also, something about "no proof of human transmission" being assured to us by the WHO.

How's your selective memory going for you?

Edited August 9, 2020 by DaftToPutRealName
Memory refresher :)

[Kopitiam]

1 hour ago, DaftToPutRealName said:

Funny, because from what I remember we were told by the "experts" that masks didn't work, that closing the border to Chinese flights was "racist" and to go and enjoy chinese new year festivities.

That's before we look at how BLM protests magically cured this pandemic and all the "experts" told us we had to stay inside unless we were protesting. Also, something about "no proof of human transmission" being assured to us by the WHO.

How's your selective memory going for you?

I think you remembered the wrong guy.

[DaftToPutRealName]

11 hours ago, Kopitiam said:

I think you remembered the wrong guy.

No, because unlike you, I don't blindly regurgitate the news I get from Twitter and CNN, but instead look at things on a larger scale than today's "breaking" update about how Trump's salt shakers being bigger is actually an allegory for white supremacy. 

I'm sorry that you're so easily manipulated during an election year, and unable to use critical thinking despite the internet being a literal archive of history with hard evidence showing who said what - you should really get that looked at.
 

[Grumpy one]

On 8/8/2020 at 7:09 PM, ChipButty said:

Some people I know have cars on finance dont have to pay until October this dont look like its getting any better so do the finance companies extend that grace period or what? they dont want to go around repossession cars they cant sell.

Thai are famous for borrowing money one of my wife's friends the other day want to borrow 200,000 Baht, sorry it's not happening no security nothing offer, Maybe they dont speak to me anymore thats fine by me

In-laws are the worst, mine all drive round in newish 4x4's and cry no got money to pay ????

I drive a 20 year old car which gets many comments from them but at the end of the day the worst thing to happen to my cay is some desperado steals it

[ChipButty]

13 minutes ago, Grumpy one said:

In-laws are the worst, mine all drive round in newish 4x4's and cry no got money to pay ????

I drive a 20 year old car which gets many comments from them but at the end of the day the worst thing to happen to my cay is some desperado steals it

Take over the payments is one they always ask me

[thaibeachlovers]

On 8/8/2020 at 9:43 PM, digger70 said:

I like to see that the banks do that .

If they do Recall All loans The banks will be in trouble themselves, There's no hope in Hell that the Borrowers can pay if they don't have the Money/Jobs/ Tourists business to meet the payments.

What are the banks going to do if they Foreclose? They will have Thousands off Properties on the books that they can't sell. The banks will also Go Broke.

 

Tell that to the banks in Ireland in 2007/2008. They seized thousands of properties that they couldn't sell. They ended up getting rid of them with very low prices.

 

Have to say I'm chuffed. First Samui is going broke, and now it seems as if Phuket is following. The two most ruined places in all of Thailand, IMO. Gaia is getting revenge. Karma is real.

[thaibeachlovers]

On 8/9/2020 at 2:23 PM, Almer said:

Correct, the banks will go belly up.

I'd be so happy if they did I might wet myself. They've been ripping me off for years with zero interest while loaning it out for interest.

[thaibeachlovers]

On 8/8/2020 at 11:59 PM, izod10 said:

Not just the hotels etc, but the banks themselves,they will undoubtedly go tits up too,was one bank in serious trouble before covid.

 Id keep as little money in a Thai bank as i could now,it makes Cyprus look like small beer in comparison

Not less than 800,000 if one wants to extend a visa for retirement.

[DrTuner]

Recession is here. Let's see how many non performing loans they have to call. Getting rid of the collateral they repo won't be easy either. 2008 again. Will be good times if you have cash and want to pick up real estate cheap and got time to wait for the market to recover, like 10 plus years.

Edited August 10, 2020 by DrTuner

[DaftToPutRealName]

56 minutes ago, DrTuner said:

Recession is here. Let's see how many non performing loans they have to call. Getting rid of the collateral they repo won't be easy either. 2008 again. Will be good times if you have cash and want to pick up real estate cheap and got time to wait for the market to recover, like 10 plus years.

+1 for this. Waiting with more capital coming in each day. The sell off of gold at its ATH is the first warning sign for Thailand as everyone knows how much they love their gold.

[Kopitiam]

4 hours ago, DaftToPutRealName said:

No, because unlike you, I don't blindly regurgitate the news I get from Twitter and CNN, but instead look at things on a larger scale than today's "breaking" update about how Trump's salt shakers being bigger is actually an allegory for white supremacy. 

I'm sorry that you're so easily manipulated during an election year, and unable to use critical thinking despite the internet being a literal archive of history with hard evidence showing who said what - you should really get that looked at.
 

Thank you for confirming I was not the one who said all the above.

[hansgruber]

Banks are having a foreclosure sale at Central. All the banks are there trying offload repossessed houses, condos and land. 

Shows you a lot about what's going on. 

[DaftToPutRealName]

2 hours ago, Kopitiam said:

Thank you for confirming I was not the one who said all the above.

Do you moonlight as a Grab driver? You seem lost.

 

1 hour ago, hansgruber said:

Banks are having a foreclosure sale at Central. All the banks are there trying offload repossessed houses, condos and land. 

Shows you a lot about what's going on. 

Anything decent, or are they still trying to get full price?

[ChaiyaTH]

Bad stuff, I figured in Chiang Mai that those who did not go bankrupt yet is only because they have mortgages and loans with no forced re-payments now but interest keeps being added regardless. Even before Covid19 it was unlikely to ever be paid back in full. Others seem to be more doing it for a hobby as a farang husband supplies the real living cash.

 

I figured that this explains the insane sales prices on many things in TH too, they expect buyers to pay their owed interest and think that is a normal practice. They are clueless and careless on what they lend, they only know the monthly amount.

Edited August 10, 2020 by ChaiyaTH

[hansgruber]

15 minutes ago, DaftToPutRealName said:

Do you moonlight as a Grab driver? You seem lost.

 

Anything decent, or are they still trying to get full price?

It's all inflated prices. Nothing of value that I could see. 

I see a townhouse/townshop I know from the Kata area that is opposite the Boathouse. It's a box with no parking, no footpath for foot traffic and can be all yours for 27 million baht. 

I wouldn't buy it for 5 million. 

[DaftToPutRealName]

48 minutes ago, hansgruber said:

It's all inflated prices. Nothing of value that I could see. 

I see a townhouse/townshop I know from the Kata area that is opposite the Boathouse. It's a box with no parking, no footpath for foot traffic and can be all yours for 27 million baht. 

I wouldn't buy it for 5 million. 

Geez, so the banks are just as useless as the owners. Not surprised - I think the only good deals I've seen involve walking around and talking with neighbours, usually a bottle of whiskey goes a good way to getting the scoop.  

I'll keep waiting for the pin to drop on tourist numbers in September - maybe come January we'll see some actual movement down when they realise the full moon festivalers aren't coming to save the day.

[KarenBravo]

First thing the bank management and their friends do is buy the bargains themselves and then inflate the price of the dross.

[DrTuner]

1 hour ago, hansgruber said:

It's all inflated prices. Nothing of value that I could see. 

I see a townhouse/townshop I know from the Kata area that is opposite the Boathouse. It's a box with no parking, no footpath for foot traffic and can be all yours for 27 million baht. 

I wouldn't buy it for 5 million. 

They'll go under a hammer soon enough when the banks have balance sheets that look like a bird of prey shot in the <deleted> with a shotgun. 

[DrTuner]

52 minutes ago, KarenBravo said:

First thing the bank management and their friends do is buy the bargains themselves and then inflate the price of the dross.

Yes, that's standard practice in recessions. In a bad depression back in the early 90's the banks in Finland were real cornholios and gave no mercy, many a small shop owner ended up taking their own lives, after the banks took all their assets and left them in debt. Never trust a banker, never take credit.

Edited August 10, 2020 by DrTuner

[The Old Bull]

When the banks repo property they over rate the value so it looks good on the books. I see lots of land for sale at ridiculous prices, the banks don't need to sell as long as they can keep listing it as an asset.

[Alex 012]

On 8/9/2020 at 12:38 AM, Kopitiam said:

I too have a story about a "orange" man in White House that caused the death of more than 150,000 people in the US.....

Chinese virus

 

Wuhan flu

 

Kung Flu

 

 

All same same

[LivinginKata]

1 hour ago, Alex 012 said:

Chinese virus

 

Wuhan flu

 

Kung Flu

 

 

All same same

 

CCP Virus. CCP fault.