Supachai lists threats to Thailand
The deteriorating asset quality of the banking sector, rapid capital flow
movements and tumbling commodity prices pose threats to the Thai economy,
the former secretarygeneral of the United Nations Conference on Trade and
Development Supachai Panitchpakdi warns.
"Several fear factors need to be monitored as they could lead to an economic collapse in some
countries and spillover to the global financial market, including Thailand. These include slumps in
commodity prices such as oil and consumer goods," he said.
Interest rate rises in certain major countries would also cause a wild swing in the Thai financial
market and impact the stock market, he said.
Among the headwinds threatening the economy, the asset quality of the banking sector is the most
important and it is essential to be prudent to prevent an upsurge in nonperforming loans (NPLs) as in
the past few years.
Don Nakornthab, senior director for financial institutions strategy at the Bank of Thailand, said last
week that bad loans could rise further this year, but commercial banks have predicted NPLs will peak