Business braces for more pain as bad debt spreads

Article Abstract:

Thailand's recovery from the attack on the baht is made more troublesome with the onset of the debt spiral. Several companies are missing their debt payments, or are rescheduling their borrowing. The tight money situation has forced several companies to lay off workers, especially in the footwear and textile sectors. Economic analysts foresee that the Thai government will have to step in to stem the debt spiral by bailout, either by borrowing from foreign sources or using its reserves. The Bank of Thailand is reported to have foreign-exchange reserves amounting to $37.3 billion and a treasury account balance of $13.5 billion as of 1996.

Public Finance Activities, National Government Liabilities & Debt, National debt, Debt financing (Corporations), Debt financing

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Second Thai firm discloses debt default

Article Abstract:

Thai building-materials firm STA Group PCL has revealed that it cannot pay the amount of $43.4 million representing its yearly payment for debt. This disclosure highlights the growing incidence of bad debts in the country, which has arisen because of high interest rates, careless investment decisions and a general economic growth slowdown. The firm's announcement, however, has not generated much stock market reaction as the business sector's attention is largely focused on the forthcoming national elections.

Nonmetallic Mineral Product Manufacturing, STONE, CLAY, AND GLASS PRODUCTS, Construction Materials, Finance, Reports, Building materials industry, Building materials, STA Group PCL

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Survey reveals Thai CFOs' optimism

Article Abstract:

A Phatra Thanakit PCL and Goldman Sachs (Asia) L.L.C. survey shows that Thai chief financial officers (CFOs) are confident that businesses and the local economy will realize significant growth. The CFOs, which expect a 9-12-month economic slowdown, believe that Thai companies will post higher cash flow, sales and capital spending and pursue expansion plans. Analysts believe that the optimism is unfounded since Thailand has been experiencing financial problems since Dec. 1995.

Surveys, Economic forecasting, Chief financial officers

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