- September 17, 2020
- Posted by: admin
- Category: Daily News
- Loans worth THB2tr owed by 1.1 million SMEs that entered the debt moratorium programme could turn into bad debts after the programme’s expiry at the end of Sep 20, says Thai Credit Guarantee Corporation (TCG).
- Many loans owed by small and medium-sized enterprises could turn into non-performing loans (NPLs), while creditors may pursue litigation to seize debtors’ assets given the tepid economic recovery, said Surachai Kampalanonwat, director of the SMEs Financial Advisory Center at TCG.
- SME loans classified as NPLs are currently valued at THB490bn, according to TCG.
- The NPL ratio for SME loans could rise to 10-20%, equivalent to an additional THB200-400bn, when the debt moratorium ends on Sept 30, Mr Surachai said.