Over 70% suffer from liquidity problems: poll

 The University of Thai Chamber of Commerce's December survey, released on Thursday, showed that based on 400 respondents, 73 per cent said they suffered from liquidity problem. The remaining 27 per cent also expected the problem to arise in the next three to six months.

 More than 55 per cent said they are having difficulty for asking for new credits.

They contributed the credit problem to lower purchasing order, higher production costs, having difficulty for credit accessing by their banks, buyers delay payment, and having problem on bank guarantee.

          "The lack of liquidity is dangerous for Thai economy next year as it would lead to layoffs and business closure," said Thanavath Phonvichai, director of the university's Economic and Business Forecasting Centre.

 The centre urged the government to cut interest rates to reduce companies' operating cost. Commercial banks are also urged to ease credit approval measures and extend payment period for debtors, while the government should provide soft loans to the suffering enterprises. Other measures are to promote export growth and help private exporters penetrate new markets, promote investors and travellers confidence, and stimulate domestic economic growth.

 Sectors that need liquidity the most are trading, manufacturing, services, and agricultural sectors respectively.

  Saowanee Thairungroj, vice president of the university on Research Division, noted that the problem at large enterprises is bigger than small and medium-size enterprises. To survive, they resorted to savings, more bank credits, negotiation for debt repayment extension, and sale of their assets.

 So far, less than one per cent of respondents is unable to pay their debt and must stop to pay the loan, while 1.8 per cent of debtors said that they have to delay their payment.