Loan quality remains in good condition despite Saha Farms fiasco: BOT
Bank of Thailand remains comfortable with the quality of bank loans, despite the financial problem at Saha Farms Group.
BOT Governor Prasarn Trairatvorakul said that Saha Farms’ financial fiasco has nothing to do with the current economic situation as it was a result of excessive investment.
He insisted that households have been more cautious in building debt, while financial institutions are more cautious as well in lending.
Krungthai Bank (KTB), Saha Farms Group's lender, expects to finalise the company's debt restructuring within the next two months, senior executive vice president Parinya Patanaphakdee said on Wednesday. He added that this customer has been a good borrower for the bank throughout 20 years, and the current problem at Saha Farms is not as serious as during the bird flu six years ago. He expected Saha Farms to recover from the financial problem within one year.
