GHB confident on hitting lending target
The Government Housing Bank is optimistic that its new lending target of Bt115 billion will be met this year, despite a drop in new mortgage lending in the third quarter due to the economic slowdown
The GHB recently introduced new products, including home equity loans and loans for furniture purchases, acting president Chatchai Virameteekul said yesterday. Under the home equity loans, home-owners can pledge their existing houses as collateral for new loans. The bank has also invited 300,000 of its customers to borrow funds to buy furniture. Those whose houses were damaged by the recent floods can also ask for loans to renovate their houses, said Chahchai. However, the GHB may not be able to implement a previous plan to offer 30-year fixed rate, he said. Such a scheme would entail high costs for the bank, and could be implemented only if the government provided a subsidy. Former deputy finance minister Chaiyot Sasomsub had earlier promised that the GHB offer a 30-year fixed mortgage rate. It currently offers three-, five- and 10-year fixed rates. Meanwhile, newly appointed Finance Minister MR Pridiyathorn Devakula has indicated that the bank could ask the government for fresh capitalisation, said Chatchai. New lending between July and September was Bt25.11 billion, down from Bt36 billion in the corresponding period last year, Chatchai said. New lending in the first nine months totalled Bt81.82 billion. The GHB's net profit from January to September was Bt2.39 billion, down from Bt3.76 billion in the same period last year. The bank has kept interest rates low and this caused profits to fall, he said. Non-performing loans (NPLs) are on a downward trend, dropping to 5.96 per cent of total outstanding credit worth Bt518.95 billion. NPLs dropped by 2.11 per cent from the same period last year, he said. State-owned banks are currently under pressure from Pridiyathorn, who wants them to lower their NPLs. The banks financed government populist policies over the past five years under the Thaksin administration. Chatchai, however, said the GHB's NPL level was quite low compared with other specialised financial institutions. Asked whether the board of directors was under pressure to resign, he said it had not received any such signal. The matter of a new GHB president is currently awaiting Finance Ministry approval. Former president Khan Prachuabmob is widely expected to be reappointed to the post. Wichit Chaitrong The Nation
|
