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Commercial banks announce hikes in interest rates on fixed deposits

Fri, 16 Jul 2010 17:24:03 +0000

BANGKOK, 16 July 2010 (NNT) —Interest rates on fixed deposits and lending rates have been hiked by financial institutions following the hike in the policy rate by the Central Bank.

Krungthai Bank has announced its fixed deposit interest rate hike of 0.25-0.35%, while key lending rates would be increased by 0.125-0.15%, effective today. Siam Commercial Bank (SCB) also raised its fixed deposit rate by 0.1-0.55%, effective today as well.

According to SCB Senior Managing Director Kannikar Chalitaporn, the rise in rates of deposits is due to increased demands for loans, making it necessary for the bank to raise more deposits, which, in turn, leads to an increase in funding costs

Managing Director of Krungthai Bank Apisak Tantiworawong, the hike in deposits are higher than lending rates is aimed at narrowing the gap between the two.

However, Chairman of Export-Import Bank of Thailand (EXIM) Narit Chaiyasoot has confirmed that the banks will not increase its lending rates until the end of August, while former Commerce Minister Narongchai Akaraserani believes that the hike in policy rate will not affect the GDP and the interest rates overall is expected to increase by 0.5%.

According to Prasarn Trairatvorakul,who will soon become the Bank of Thailand (BoT) Governor, the interest rates on fixed deposit will increase first as they react faster to changes in market rates. In addition, during the fall of interest rates, money has been transferred to savings accounts due to its more liquidity. That is the reason why fixed rates will have to be increased first to attract depositors; savings interest rates will be adjusted later proportionately.

Siam Commercial Bank to issue bills of exchange to help boost the economy BANGKOK, 3 June 2010 (NNT) —The Siam Commercial Bank (SCB)...

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One month needed for Interpol consideration over Thaksin´s case

Fri, 16 Jul 2010 17:17:24 +0000

BANGKOK, 16 July 2010 (NNT) – A nod from the Paris-based international police intelligence-sharing association, Interpol, over case of self-exiled ex Prime Minister Thaksin Shinawatra should be known within one month.

Police Maj-General Terdsak Rujirawong, Commander of the Royal Thai Police Foreign Affairs Division, said on Friday that an arrest warrant on terrorism charge issued by the Criminal Court has been sent to the Interpol’s headquarter in Paris. However, it is possible that the Interpol might reject the government’s request.

Asked if Mr Thaksin’s dual citizenships; Thai and Montenegrin, would affect the extradition process, Pol Maj Gen Terdsak’s reply was no. The notice released from the Interpol only required its member states to give a close watch as well as confirm his presence and report it to the Interpol’s Bangkok office. The Attorney-General’s International Division will then coordinate with the country that allows Mr Thaksin’s relocation to extradite the then premier back to Thailand.

However, if Interpol gives the nod to government’s petition, the Red Notice will be filed to its 188 member states in executing Mr Thaksin as a transnational terrorist.

Foreign Ministry to join hands with the Interpol in tracking Thaksin BANGKOK, 25 May 2010 (NNT) — The Ministry of Foreign...
Kasit not to pressure EU for Thaksin´s extradition BANGKOK, 29 May 2010 (NNT) – Foreign Minister Kasit Piromya...
Most Thais monitoring ruling of Thaksin’s case closely BANGKOK, 21 February 2010 (NNT) – The majority of Thai...

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Loan clients urged to be well-prepared for higher finance costs

Fri, 16 Jul 2010 17:10:01 +0000

BANGKOK, July 16 – Loan customers, particularly small- and medium-size enterprises (SMEs), must have well-prepared business plans to cope with higher financial costs in the face of an upward interest trend, according to the Kasikorn Research Center (KRC), a leading Thai financial think tank.

Kasikorn said that major domestic commercial banks had begun raising the fixed interest rate by 0.10-0.55 per cent and the lending rate by 0.125-0.15 per cent following the Bank of Thailand (BoT) decision to increase the policy interest rate for the first time since September 2008 at the Monetary Policy Committee meeting on July 14.

The policy rate hike was probably made in response to the changing financial policy, maintaining competitiveness and the customer base, and expected economic expansion and lending growth.

The rate increase should not be influenced by the reduced financial liquidity as outstanding loans remain high.

Although the rate hike is rather small, KRC said, it gave a concrete signal that Thailand is entering into an upward interest cycle.

Commercial banks have more room for deposit and lending rate hikes in the rest of this year as the central bank continues signaling a further policy interest increase and a move to absorb liquidity in the financial system.

Under the circumstance, KRC warned, the loan clients, particularly SMEs which mostly adopt floating interest rates, should have well-prepared business plan to deal with higher financial costs efficiently in response to the upward interest trend.

Simultaneously, depositors would benefit from increased actual interest returns. (MCOT online news)

Fiscal policy unaffected by state officials’ pay raise BANGKOK, 23 June 2010 (NNT) – The salary hike for...
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4 Govt agencies cooperate to promote Thai investment abroad

Mon, 12 Jul 2010 16:25:44 +0000

BANGKOK, 12 July 2010 (NNT) – The Office of Thailand Trade Representative (TTR) joins force with three financial institutions to promote Thai investments abroad, with operators in various business groups showing keen interest in the project.

TTR along with SME Bank, EXIM Bank and the Government Pension Fund (GPF) announced their cooperation in credit support to Thai operators for their investments in international markets.

Consideration for the selecting of potential operators to join the project will be the responsibilities of the TTR. Suitable business and its primary information will be examined before passing to those institutions for further process.

The EXIM and SME Banks are tasked to support selected operators in financial aspect for their investments in both domestic and international markets, while the GPF will consider the feasibility of particular business under the GPF criteria, referring to the risks and appropriate returns.

According to the TTR, several business groups so far express their intention to join the project such as auto part garage in the US, department stores in Thai towns, Thai food network abroad, real estate in Russia, Yacht pier, food warehouse, Thai silk and creative business, for example.

BoI opens 13th Thai investment office abroad, in Stockholm BANGKOK, Sept 20 (TNA) — In an bid to draw...
Exim Bank to expand loans and services for investment abroad BANGKOK, 6 March 2010 (NNT) – Export-Import Bank of Thailand...
TTR to promote private sector’s investment in war zone countries BANGKOK, 9 June 2010 (NNT) – The Office of Thailand...

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Thai exporters urged to watch out for European economic crisis

Mon, 12 Jul 2010 16:21:04 +0000

BANGKOK, 12 July 2010 (NNT) – The Ministry of Commerce has warned Thai exporters to Europe to be on alert of the current situation in the European market amidst the looming economic crisis in the region.

Ms Srirat Rastapana, Director-General of the Department of Export Promotion (DEP) under the supervision of the Ministry of Commerce, noted that the Euro depreciation caused by the economic crisis had begun to drag the region’s purchasing power down. As a result, she said Thai exporters had turned to use the US Dollar currency instead of the Euro and were now focusing more on penetrating the medium-end market to avoid bargaining.

The DEP Director-General thus encouraged Thai exporters to closely monitor their trade with Europe, which was still considered one of the most vital export markets for Thailand and was responsible for 11% of the total export value of the Kingdom. She added that the Commerce Ministry had set a target to expand exports to the region by 10% in the near future.

In the meantime, the Ministry has also revised the overall export target for 2010 up to 18% while the search for new markets is underway.

European economic crisis to affect Thailand’s exports BANGKOK, July 1 (TNA) – The economic crisis in Europe...
Baht stable despite impact of European public debt crisis: BoT BANGKOK, June 5 (TNA) – Asian currencies including the Thai...
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Economy in fisrt 5 months expanded continuously despite political rift

Mon, 12 Jul 2010 16:19:52 +0000

BANGKOK, 12 July 2010 (NNT) – The Economic Cabinet meeting acknowledges the economic situation in the first five months of 2010 which continuously expands despite political impact, while the tourism sector that has just recovered in June is deemed to turn normal by year-end.

According to a report by the Bank of Thailand (BoT) presented to the Economic Cabinet, the tourism sector got the most impact from political rift within the past five months and had just been revived in June. The sector was deemed to turn normal by year-end. However, overall economic situation has shown a sign of continuous growth amid recent internal chaos with the rise of investment made by the private sector.

Unemployment rate was reported at an appropriate level or 1.1 percent, while consumers’ and private sector’s confidence in Q1 was improving which resulted in the strengthening of financial institutions and high liquidity.

The Economic Cabinet was also reported by the board of Investment (BoI) that within six months there were 192 billion THB of investment from 632 projects which applied for BoI promotion, a rise by 7.4% in value and 46.3% in project number compared to last year.

The Economic Cabinet stated its concern on internal politics which might be the factor of economic depression including the hike of inflation in the next few years, pointing out that the monetary policy needed to be closely monitored thereafter.

BoT predicts Thai economy this year will grow continuously BANGKOK, 18 June 2010 (NNT) –The Bank of Thailand (BoT)...
FPO foresees 2010 economy to rise positively BANGKOK, 13 February 2010 (NNT) — The Fiscal Policy Office...
Higher interest rate is not needed in the next 3 months BANGKOK, 4 November 2009 (NNT) – The Bank of Thailand...

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OAG to present Democrat’s donation case to court on 13 Jul

Mon, 12 Jul 2010 16:16:33 +0000

BANGKOK, 12 July 2010 (NNT) – The Office of the Attorney-General (OAG) is planning to submit a letter to the Constitutional Court for deliberation of the Democrat Party’s donation case tomorrow.

Deputy Attorney-General Waiyawut Lortrakul revealed that the OAG’s working team was preparing to present a petition for the Constitutional Court’s final ruling on the donation case of the ruling Democrat Party in the afternoon of 13 July. He said the panel had forwarded the document to Attorney-General Julasing Wasantasing for examination and endorsement.

Mr Waiyawut said the OAG would ask the court for approval on a 5-year electoral ban on the Democrat Party leader as well as over 40 executive members who were involved in the case during 2004-2005.

Earlier, the Election Commissioners voted to dissolve the Democrat Party on grounds of violating the Political Party Act by accepting 258-million-THB donation from a cement manufacturing firm, Thai Petrochemical Industry (TPI) Plc.

OAG forms panel to handle Democrat dissolution case BANGKOK, 20 April 2010 (NNT) – The Office of the...
EC chair admits potential delay to consider Democrat scandal BANGKOK, 13 January 2010 (NNT) – Election Commission (EC) Chairperson,...
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Summary of the 9th APEC Energy Meeting

Mon, 12 Jul 2010 16:14:19 +0000

Thai delegates led by Minister of National Resources and Environment, Suwit Khunkitti, along with international counterparts from 20 countries attended the 9th Asia-Pacific Economic Cooperation (APEC) Energy Ministerial Meeting in Fukui, Japan on 19 June 2010.

During the summit, a speech on the “Low Carbon Paths to Energy Security: Cooperative Energy Solutions for a Sustainable APEC” was delivered by Mr Suwit in a bid to clarify the country’s attempt to strengthen stability and security of energy supplies as well as to promote environmental conservation practice, particularly the reduction and offset of green house gas emission.

Topics on energy development and environmental preservation have been highlighted by the Thai government, with regards to the recent establishment of several projects including the Collaborative Assessment of Standards and Testing, promoting Carbon Capture Storage Technology, APEC Peer Review on Energy Efficiency as well as the Cooperative Energy Efficiency Design for Sustainability (CEEDS). According to the Minister, CEEDS targets on promoting technological use of environmental friendly and energy-efficient building materials. Thailand has confirmed its readiness to host the CEEDS Summit in the near future.

Moreover, a study of greenhouse gas emission-reduction by the use of nuclear energy as well as the development of Smart Grid System, APEC Technology Development Roadmap and the low carbon city models have also been highlighted by the Thai Government.

Following talks with the Deputy Secretary of Energy of the US, Daniel B. Poneman, Thailand and USA have agreed to extend cooperation on biofuel development, particularly on the “Celluosic 2nd Generation of Biofuel”, which has become widely popular in the US. The US’ study on certain topic concentrates on the development of biodiesel from non-edible plant sources. Thailand and USA have also agreed to join hands for the development of nuclear energy.

Speaking upon a meeting with the Secretary of Australia’s Department of Resources, Energy and Tourism, Drew Clarke, Mr Suwit reassured the Australian Government that the recent crude oil and gas leak incident in Montara, Australia, would be solved urgently by the PTT Exploration and Production PCL. Mr Clarke reported that the investigation results by the Australian Government would be addressed within 6-8 weeks time. Mr Suwit pleaded for supports from the Australian Government in allowing Thai companies to continue investment in petroleum exploration in the country.

Meanwhile, Thailand wishes to extend cooperation on nuclear power with South Korea, particularly in measures for public understandings and acceptance. South Korea’s Knowledge Economy Minister, Choi Kyunghwan has accepted an invitation of the Thai government for a visit to the country. The application of alternative energy resources, which are plenty in Thailand, to serve South Korea’s renewable energy plan for transportation, would be considered by the South Korean Government.

Both countries have also agreed to hold a seminar called the “Green Field Investment” for South Korean business entrepreneurs to invest in clean energy in Thailand.

In addition, a talk with Kenji Kobayashi, President of the Asia Pacific Energy Research Center (APERC), resulted in further cooperation in various activities, such as APEC Peer Review on Energy Efficiency and APEC Low Carbon Model Town. Thailand has also agreed to host Cooperation Energy Efficiency Design for Sustainability, jointly with the APERC in the coming days.

Thai delegates also paid a visit to large-scale solar energy plants in Osaka as well as Japan’s electricity generation company, Kansai Electric Power Co., Inc and its affiliate. The fieldtrip will help shaping up suitable strategies in Thailand’s Energy Policy and Development Plan, to work in accordance with other development in the APEC region.

However, the United States has offered to host the 1st APEC Energy high commissioners meeting in 2011, while Russia will host the 10th APEC Energy Ministers’ Meeting in 2012.

hailand to join APEC energy ministers meeting in Japan later this month BANGKOK, June 6 (TNA) — Thailand’s Energy Minister Wannarat Channukul...
BIMSTEC Energy Ministers’ meeting to kick off in Thailand BANGKOK, 4 March 2010 (NNT) – The Energy Minister’s meeting...
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US support upon Thai govt´s reconciliation plan shows its good understanding towards Thailand

Fri, 02 Jul 2010 15:21:37 +0000

ANGKOK, 2 July 2010 (NNT) – Foreign Ministry Spokesperson says the support of US Lower House toward Thai government’s reconciliation roadmap reflects its good understanding of the situation in Thailand.

The Foreign Ministry got a report from the Royal Thai Embassy in Washington DC in the United States that US Representatives adopted a resolution at the meeting on 1 July to support the five-point peace roadmap of Prime Minister Abhisit Vejjajiva for social reconcilation. The US expects to see all related parties in Thailand make their best effort to deal with conflicts on the basis of democratic direction.

Ms Vimon Kidchob, the Foreign Ministry Spokesperson, cited that Thai Embassy to Washington DC has continuously informed the US Representatives about Thai situation during political turmoil in Bangkok and the resolution of the US Lower House shows its comprehension of the Thai situation very well.

PM urges all parties to support reconciliation plan BANGKOK, May 6 (TNA) – Thai Prime Minister Abhisit Vejjajiva...
Govt determined to rebuild the nation with reconciliation roadmap BANGKOK, 23 May 2010 (NNT) – Prime Minister Abhisit Vejjajiva...
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Canned coffee market set to expand this year

Fri, 02 Jul 2010 14:02:50 +0000

BANGKOK, July 2 – Thailand’s domestic market for canned coffee drinks is set to grow 4-6 per cent this year with a market value of around Bt10 billion, boosted by the economic recovery, diversification of product lines, and higher demand among consumers, according to the Kasikorn Research Center.

The leading think tank expected the World Cup 2010 in South Africa will also help boost total sales of canned coffee this year as competitions in the quarter-final, semi-final, and final matches will be broadcast live in Thailand after midnight, from1.30-3.30am.

To keep themselves from falling asleep, many viewers count on canned coffee during that time.

In addition, students and working people who watch the competitions may need to consume additional coffee in the morning to refresh themselves while studying or working.

Because of this, the projected total sales of canned coffee will rise by more than usual by as much as Bt40-80 million or 5-10 per cent.

Entrepreneurs should take this opportunity to join in the World Cup 2010 festivities by offering attractive sales promotions to draw consumers.

KRC said these factors could contribute to the higher growth of canned coffee sales this year. However, they may be insufficient to push up total sales to equal those earned in the past few years.

Entrepreneurs should step up their efforts to launch varied promotional campaigns to boost sales and make their products reach consumers more comprehensively.

To this end, key strategies that need to be adopted include improving coffee flavor, expanding distribution channels, organising marketing promotion activities, and expanding export markets. (MCOT online news)

Chocolate market expected to grow 20% this year BANGKOK, 12 February 2010 (NNT) – The domestic chocolate market...
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