LTV ratio rule to be delayed to 2013
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Thailand's central bank plans to relax rules on home loans to help borrowers and lenders following the nation's worst floods in almost 70 years.
Bloomberg quoted Atchaporn Jarujinda, the secretary of the Council of State and a member of the central bank's committee on financial institution policies as saying that the loan-to-value ratio rule would be implemented in 2013.
Three property associations last week submitted a request for the delay, citing that property developers are now hard hit by the floods which could plunge home sales in the fourth quarter by half. They expected the home sales to stay sluggish until next year.
The Bank of Thailand originally plans to implement the rule on Jan 1, 2012. It requires banks to lend no more than 95 per cent of home value.
