World Economy

Thai Firms May Default

Thai Firms May DefaultThai Firms May Default

Hopes that bad debts in the Thai financial system may have peaked this year are fading as more small and medium-sized enterprises default on their bank loans, hit by slowing domestic consumption and falling exports, particularly to China, NewsNow reported. The rising tide of non-performing loans is spurring analysts to downgrade their outlook for Thai banks. The sector and individual lenders such as Bangkok Bank and Siam Commercial Bank have been downgraded at least twice this year as souring loans and a stuttering economy eat into their earnings. Thailand’s central bank has already twice lowered its growth forecast for the country and is expected to cut its estimate for the third time next month.