Central bank unfazed by bad loans for propertyThe Bank of Thailand is unconcerned about pre-finance loans for property developers and bad property loans, says a senior official, citing the sound financial condition of large developers. "Banks typically offer pre-finance loans to large developers with sound finances and long-term experience in the business, so the NPL ratio of the project loans has been steady," he said. Apart from bank loans and debt instruments, the bond market is a key funding source for large property developers and helps mitigate the banking sector's credit risk. Bangkok Bank senior executive vice-president Virasak Sutanthavibul said the bank offers loans with a focus on large developers that have long-term experience and a good reputation. Kasikornbank executive vice-president Surat Leelataviwat said KBank is still providing loans to the property sector, but on a selective basis.

Source: Bangkok Post January 28, 2020 00:11 UTC