Aim Loan Rates

Targets interest on loans

The goal above is to reduce the cost of borrowing. Over time, prices are adjusted to look like they do in retail. Ten year long interest rates should attract lessors Creditors are now trying to buy-to-let with 10-year fixed-rate loan capital providers who provide payment security over a longer term. In recent years, buy-to-let lessors have already had their yields depressed by the government's stricter taxation system. Increasing interest rates will also increase the pressures on a landlord's earnings.

Two of the industry's largest financiers - BM Solutions and The Mortgages Works - have both transferred the increase in the 0.25% key interest to those with floating rates. Householders can use fixed-rate mortgages to hedge against these and prospective interest hikes, and banks try to attract buyers looking for long-term businesses.

It is Investec's target in this regard to launch a 10-year buy-to-lease secured interest bearing 3.69% mortgages. SPF Retail's Mark Harris, a mortgage realtor, said this was one of the few 10-year deal aimed at landlords. Here's a list of the most important SPF retail buyers. Mister Harris said while few hosts were subscribed to up to 10-year agreements, they provided a useful option. s

Programs to stabilize credit to SMEs in Thailand | Thailand 2016

As small and medium-sized companies (SMEs) account for a significant part of Thailand's economy and are crucial to the continued diversity of the economy, the funding of small and medium-sized businesses (SMEs) is becoming a top policy objective for the State. Nevertheless, business SME credit in Thailand is projected to decelerate in 2016 as the non-performing loan (NPL) rate increases against the background of slower economy expansion.

According to the Office of SME Promotion (OSMEP), in 2014 small and medium-sized enterprises (SMEs) accounted for 5.21 trillion BT (USD 156.8 billion), or 39.6% of Thailand's GNP, of the country's 2014 output, and despite their only 0.2% increase in GNP in 2014 from 3.5% in 2013, small and medium-sized enterprises (SMEs) remained an important part of the country's domestic economy. According to reports from SMEEP, there were 2.74 million SME' at the end of 2014, or 99.73% of the entire enterprise population, while the State SME Bank estimated that there were more than 15 million SME', most of which are not registered.

According to SMEEP, in 2014 small and medium-sized enterprises represented an additional 80.3% of overall staffing. Small and medium-sized enterprises (SME) credit is also important for Thailand's finance industry, which, according to the Bill of Thailand (BOT), represented 38.4% of the country's overall corporate banking credit in 2015. Whilst Deloitte reports that SME credit has increased from 3.4% in 2014 to 5.6% in 2015, Deloitte reports that between 2011 and 2014 the volume of SME credit has grown at an average of 12% per year to USD 171 billion from USD 133 billion in 2011.

In 2015, according to Boehringer Ingelheim's report, SME NDPs increased by 19.8% from BT 137.9 billion ($4.2 billion) in 2014 to BT 165.2 billion ($5 billion) in 2015 and an NPL quota of 3.5% in the fourth quarter of 2015. On the other hand, there is a rate of 2.56% for credit to consumers, 1.61% for business lending and a total NPL rate of 2.55%.

"MPLs are still on the rise and are expected to remain so into the second half of 2016, in part due to slow recoveries, droughts and the repayment of previously restructuring credit in them. As a result, bank risk provisions will remain high and we will see the impact on SME lending in 2016," Kritapas Siripassorn, research analyst at Citibank, said to OBG.

A number of new SME support schemes have been launched by the authorities to help stabilize loan and NPL activity in the longer run. This includes the Business Security Act of April 2015, which provides better accessibility to finance through the use of available property as security, and providing financing support, mostly in the shape of low-interest debt.

January 2016 saw the announcement by the Government Savings Bank and the Thai Stock Exchange of a plan to set up a SME Trust Fund to fund low interest working cap lending. MoF also strengthens loan aid programs through a two-pronged supporting approach consisting of funding and supporting fiscal policies.

As part of the support column, support schemes comprise a soft loan system, a loan guarantees programme and a risk finance funds.

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