Jump to content

Bank of Thailand Debt Moratorium Scheme Ended


Recommended Posts

Today, the Bank of Thailand (BOT) Assistant Governor stated the BOT broad-based debt moratorium ended on Thursday October 15, 2020. She said that the broad based scheme will not be extended. They plan to introduce schemes to help financial institutions to help their debtors. BOT wants the banks to avoid classifying loans as NPLs.

 

BOT has not reported NPLs in 2020 on their website but are reporting "special mention loans" as at August 2020 as 1.2 trillion baht. It seems NPLs are enormous, else they would be reporting the numbers. Sounds like the banks are in worse shape than the public is aware.

 

Best to take your cash out the banks.

 

Edited by Banana7
  • Like 2
Link to post
Share on other sites
  • Replies 76
  • Created
  • Last Reply

Top Posters In This Topic

Top Posters In This Topic

Popular Posts

It seems that you can not go on to T.V. now, without some-(expert)-one handing out the fear pills.   If in doubt go onto to Google and ask if Thailand is worse of now then the 1997 crash....

You have to trust the government if your account is in one of the government banks.   Private banks have nothing to do with the government.   Their superior authority is the centra

The very last thing that BOT and the Government want is a huge showing within the Commercial Banking System of NPL. By  placing default and delinquent Loans into " special mention Loans " which a

Posted Images

Unfortunately this is the same everywhere.

 

Have a look at the European banks, notably Deutsche Bank, BNP Paribas, and the Italian banks...

 

And China!

 

The states, with the help of the central banks, won't let the banks collapse.

 

They can always print enough money to fill up the holes...or transfer the bad debts to a special purpose vehicle, and stuff them to the unaware general public...

Edited by Brunolem
Link to post
Share on other sites
39 minutes ago, Golden Triangle said:

Serious question directed at those on here who profess to understand these situations,

 

 

Should I be worried ?

 

 

Most of the risky loans to the small guys are provided by government banks (Thanachart and the likes).

 

If your money is in a private bank (Bangkok Bank...), it's as safe as in any solid international bank.

 

  • Haha 1
Link to post
Share on other sites

Recently, within the last 2 months, Bangkok Bank issued USD$750 million in bonds and in October, Kasikorn issued USD$500 millions in bonds to help with their tier 1 capital, which has been eroding due to NPLs. Other banks have also issued bonds this year, and more bank bonds may be issued in the near future. Also BOT has forbidden Thai banks to pay dividends or do share buy backs which has resulted in depressed share prices for Thai banks.

 

This is one reason why the baht remains strong against foreign currencies. Billions of USD are coming into Thailand to help the Banks.

 

 

  • Like 2
Link to post
Share on other sites

With all this Money flowing into the Thai Banks, it will also assist in there credit ratings, which in turn will make it easier and cheaper for them to borrow Money in the future.

The fact still remains that Household Debt, and Business Debt is through the roof, and the ever increasing threat of NPL is weighing heavily on the Banks right now, and defaults are to be expected. The only question is how big the fall is going to be..

  • Like 1
Link to post
Share on other sites
3 hours ago, Kwasaki said:

Bangkok bank is supposed to be bullet proof. 

How could they take my money.? 

If everyone wanted their money out of Bangkok Bank, around the same time, (a run on the bank) then it's possible no one gets their money, or, withdrawals would be limited to maybe 3000 baht a day, for example.

 

At this stage, they haven't "taken" your money, they are just not giving it back. 

 

If everyone continues to withdraw their 3000 baht a day, over a sustained period, then the Thai government either bails out Bangkok Bank, or they allow a bail in, which means you lose some of your money which will be used to prop up the bank.  Or, they simply allow Bangkok Bank to go broke, and you lose the lot.  How much do you trust the Thai government?

 

As the OP suggested, best to get in before a run on the bank, and that's any bank here.

 

Before you ask, "What about next year's visa?"  That will be the least of your problems, should the multitude of bad debts that Thai banks have taken on over decades start to fail over the next few months and beyond.  

 

Edited by Leaver
  • Like 2
Link to post
Share on other sites
2 hours ago, Golden Triangle said:

Serious question directed at those on here who profess to understand these situations,

 

 

Should I be worried ?

 

 

Worried, no.  

 

Concerned, yes.

 

Get your money out while it's still there to get.  

Link to post
Share on other sites
3 hours ago, Cake Monster said:

The very last thing that BOT and the Government want is a huge showing within the Commercial Banking System of NPL.

By  placing default and delinquent Loans into " special mention Loans " which are Loans that are between 30 and 90 Days overdue on repayment, the BOT hopes to keep the Investment confidence high within the Country for Foreign Investors.

The Share prices of the Banks will also stay bouyant due to these measures being taken.

However ! ,  All will go well, as long as the Interest OR the principle on the Loans gets paid by the debtor s in " Special Mention "

But if these debtors default on the agreed payments, they will rapidly convert into NPL Loans, and a projection a few Months ago stated that Thailands NPL could possibly be as high as 40 % of GDP.

Now that is a worrying statistic .

I would have thought that any Foreign investors would employ very good accountants and auditors to sniff out nasty things like this. Does the BoT think that any Foreign investors would be so stupid as to invest in Thailand without due dilligence?

  • Like 1
Link to post
Share on other sites
3 hours ago, Cake Monster said:

However ! ,  All will go well, as long as the Interest OR the principle on the Loans gets paid by the debtor s in " Special Mention "

Isn't that the same debtor that already defaulted?  Where do they suddenly get the capacity to repay?

 

3 hours ago, Cake Monster said:

But if these debtors default on the agreed payments, they will rapidly convert into NPL Loans, and a projection a few Months ago stated that Thailands NPL could possibly be as high as 40 % of GDP.

Now that is a worrying statistic .

Strap yourself in. 

 

Tourism was worth around 17% of GDP, on the books, but how many Thai's did the tourism industry employ, either directly, or indirectly, not to mention the sex trade?  It's been non existent for months, with no sign of it coming back soon, and many Thai's have sold the family's silverware just to stay afloat.  The first bill they will not pay is a loan.   

  • Like 2
Link to post
Share on other sites
1 hour ago, Banana7 said:

Recently, within the last 2 months, Bangkok Bank issued USD$750 million in bonds and in October, Kasikorn issued USD$500 millions in bonds to help with their tier 1 capital, which has been eroding due to NPLs. Other banks have also issued bonds this year, and more bank bonds may be issued in the near future. Also BOT has forbidden Thai banks to pay dividends or do share buy backs which has resulted in depressed share prices for Thai banks.

 

This is one reason why the baht remains strong against foreign currencies. Billions of USD are coming into Thailand to help the Banks.

 

 

In my opinion, given the current global financial circumstances, this is unsustainable.    

  • Like 1
Link to post
Share on other sites
7 minutes ago, billd766 said:

I would have thought that any Foreign investors would employ very good accountants and auditors to sniff out nasty things like this. Does the BoT think that any Foreign investors would be so stupid as to invest in Thailand without due dilligence?

Wait till they start shorting them.  

  • Like 1
Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
  • Recently Browsing   0 members

    No registered users viewing this page.


×
×
  • Create New...