Growth slows as exports fall, rising household limits Bank of Thailand & PTT to create own in-house bank.
Advertisements for personal loans are seen in Bangkok early last month. Household debt is estimated at 80% of gross domestic product at present PATTARAPONG CHATPATTARASILL
Thai growth slows as exports decrease
Thai economic growth slowed for a second quarter as exports cooled and local demand weakened, with rising household debt restricting the scope for monetary easing
Southeast Asian countries in general have seen exports falter as growth slows in China, and Europe and Japan struggle to sustain economic recovery
The Thai baht has slipped almost 5% against the United States dollar in the past three months, after reaching its highest level since 1997 in April. The benchmark Stock Exchange of Thailand Index has lost more than 10% over the last three months, among the worst performers in Asia.
The central bank cut its 2013 GDP growth forecast to 4.2% from 5.1% on July 19, citing weaker-than-expected exports.
[Read rest of article here].
Soaring household debt limits monetary policy
The current household debt is estimated at 8 trillion baht, or 80% of gross domestic product (GDP).
Of the total, less than half, or 3.8 trillion baht, came from commercial bank loans The rest was from state-owned specialised financial institutions (2 trillion baht), cooperatives and other lending sources (1 trillion baht each).
Ideally, the household debt should be around 40% of GDP. There needs to be a balance between corporate public and household debt in order to sustain financial liquidity
At its July meeting, the central bank' s rate-setting Monetary Policy Committee (MPC) decided to maintain the one-day repurchase rate at 2.5% although domestic consumption was running out of steam saying growing worries over the rising household debt limited its scope of action for any rate cut.
[Read rest of article debt" >here].
PTT plans in-house financing
PTT Plc, the national oil and gas conglomerate is following in the footsteps of multinational firms by setting up an "in-house bank" to secure financing for the company and its subsidiaries.
The PTT Group has 300 firms operating across the region and each one requires massive capital investment every year. Just the parent company alone, PTT, needs 300 billion baht in new capital annually A third of the group's 300 firms operate internationally to some extent
PTT's in-house bank will be set up in Singapore because of greater flexibility compared with stringent Thai regulations
Commercial banks in Thailand must comply with central bank rules on single lending limits, capped at 25% of their risk capital to companies within a single group (exceptions can be made on a case-by-case basis).
[Read rest of article here].
Learn from listening
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advertisement: advert; a short piece of video or words with pictures that makes people interesting in buying some product - การโฆษณา
annually: happening every year - ทุกๆปีด
balance: a stable condition/relationship between two sides - ความสมดุล, การทรงตัว
benchmark: a standard that other things can be compared to, for example, to calculate prices - ตัวเปรียบเทียบ; การวัดเปรียบเทียบสมรรถนะเกณฑ์มาตรฐานหมายถึง การทดสอบเพื่อวัดความสามารถในการประมวลผล หรือการทำงานของ โปรแกรมใดโปรแกรมหนึ่ง หรืออุปกรณ์คอมพิวเตอร์ชนิดใดชนิดหนึ่ง โดยเทียบเคียงกับเกณฑ์มาตรฐาน
cap: an upper limit on an amount of money that can be spent or borrowed - ขีดสูงสุด, ครอบ
capital: a large amount of money that is invested or is used - ทุน, เงินทุน
case-by-case basis: considering cases one by one - โดยพิจารณาเป็นกรณีไป
central bank: the main government bank in a country that controls the supply of loans (credit) and the supply of money in the country and provides financial services to the government and other banks - ธนาคารแห่งชาติ
cite: to mention something as an example - กล่าวถึง
commercial bank: a bank with branches in many different places, that provides a range of services, especially related to bank accounts, loans and saving money, for people and businesses; the kind of bank that most people use - ธนาคารพาณิชย์, สถาบันการเงินที่มุ่งเน้นการรับฝากเงิน
comply: to obey a rule, law, agreement, etc. or do what someone asks you to do - ปฏิบัติตาม (กฎหมาย, ข้อเสนอ, ข้อตกลง etc.)
conglomerate: a large company formed by joining together different firms - กลุ่มบริษัทในเครือ
cooperatives: a farm or business owned and run by the people involved, with the profits shared by them - สมาคมสหกรณ์
corporate: involving large companies - บริษัทใหญ่
current: of the present time - ปัจจุบัน
debt: an amount of money that you owe - หนี้
demand: the need and desire of people to buy goods - อุปสงค์
domestic: inside the country being talked about - ภายในประเทศ
domestic consumption: the buying and use of goods and services within the country - การจับจ่ายใช้สอยในประเทศ
estimate: an amount that you guess or calculate using the information available - ประมาณการ
exception: something that is different in some way from other things and so cannot be included in a general statement - ข้อยกเว้น
faltering: losing strength; talking something awkwardly - พูดตะกุกตะกัก, ลังเล
finance: to provide money for something - จัดหาเงินทุนให้
financial: involving money - เกี่ยวกับเงิน, ทางการเงิน
financial institution: a business which helps its customers manage money, e.g., a bank, insurance company, etc. - สถาบันการเงิน
firm: a business or company - บริษัท
flexibility: can change easily - การปรับตัวเข้ากับสถานการณ์, ความยืดหยุ่น
follow in the footsteps of: to do something that someone has already done in the past -
forecast: a statement about what will happen in the future based on information available now - การพยากรณ์, การคาดการณ์
gross domestic product: the total value of all goods and services produced in a country in a year, except for income received from money invested in other countries. It is often simply called GDP - ผลิตภัณฑ์มวลรวมภายในประเทศ
growth: economic growth, an increase in economic activity - การเติบโต
household: a group of people, often a family, who live together - ครัวเรือน
in general: including the most important aspects of something; not exact or detailed; overall - โดยทั่วไป
in-house: internal; within a company or organization - ซึ่งเกิดภายในองค์กร, ภายในองค์กร
index: a number that shows the price, value, or level of something compared with something else - ดัชนี
investment: the act of investing money in something - การลงทุน
liquidity: a situation in which an organisation, company, business, etc. has the money it needs to pay its bills - สภาพคล่อง
loan: an amount of money that a person, business, or country borrows, especially from a bank - เงินกู้
local: in this country (Thailand) -
massive: very large in size, amount or number - ใหญ่โต
monetary easing: an expansionary monetary policy that makes money and loans "easier" to get by reducing interests rates but at the same time risking greater inflation in the long-run -
monetary policy: the policy of the central bank of a country to control the supply of loans and money in the economy - นโยบายการเงิน
multinational: a company that operates in many different countries, especially a large and powerful company - บรรษัทข้ามชาติ, บริษัทระหว่างประเทศ
national: for the whole country - แห่งชาติ, ของชาติ
operate: to carry out an activity like running a business - ดำเนินการ
personal: your own; not belonging to or connected with anyone else - เป็นส่วนตัว
present: this time, happening now, happening currently - ปัจจุบันนี้
quarter: three months of the year on the official calendar of the government or companies -
recovery: the process of becoming normal and healthy again - ฟื้นฟูสภาพ
region: a large area of land, usually without exact limits or borders - ภูมิภาค, ขอบเขต, แถบ, บริเวณ
regulations: official rules that control the way that things are done - ระเบียบปฏิบัติ
repurchase rate: an interest rate on repurchase agreements -
restrict: to limit - จำกัด
risk: the possibility that something dangerous or unpleasant might happen - ความเสี่ยง
running out of steam: losing power or energy -
scope: the number and variety of things that someone deals with, handles or manages -
secure: to get or achieve something - ได้มา
set up: to create something or start it - ตั้งขึ้น
slip: to fall to a lower level; to become worse - ตกต่ำ,เสื่อม,เสื่อมโทรม
soaring: rising very quickly to a high level - พุ่งพรวดขึ้น
source: the place/person/organisation from which you get something - แหล่ง
specialised: intended for a limited number of users with specific needs; having very specific uses - เฉพาะด้าน
stringent: (of a rule, law, etc.) very strict and that must be obeyed - เข้มงวด
struggle: to try hard to do something that you find very difficult - พยายาม, ประสบปัญหา, ต่อสู้กับปัญหา
subsidiary: (of a business company) owned or controlled by another company - บริษัทในเครือ
sustain: to keep; to continue - รักษาไว้
to some extent: somewhat - ในระดับหนึ่ง
worst performer: someone who is in the group of those who did the worst in some area; who achieved the least -
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