KBANK CEO says low rates won’t solve economic problem

BANGKOK, March 17 (TNA) -- Kasikornbank Public Co, Ltd CEO and chairman Banthoon Lamsam says low interest rates are not the key to solving national economic problem, a similar problem which is facing by Japan now. Mr Banthoon said it is difficult for Thailand to achieve growth at 3.5 per cent in 2016 although the government has used both the monetary and fiscal policies in stimulating economy like several other countries. There are pressures for the Bank of Thailand to lower its policy interest rates to help solved the country’s economic problem, but it is useless because there are no borrowers while the industrial sector would not increase production capacity, he said. “Although commercial banks don’t have limit in extending loans, they’ve to monitor cash flow of the would-be borrowing firms,” said Mr Banthoon. He forecast that Thailand’s exports in 2016 would suffer contraction for third consecutive year because global economy has not recovered yet, domestic poor purchasing power and drought problem. Several government-sponsored mega projects cannot make headway because of environmental problems raised by several sectors, said Mr Banthoon, adding that the government must be decisive in those delayed projects so that they could be implemented. On a possibility that national general election could be postponed, Mr Banthoon said the delay does “not pose an obstacle to foreign investment.” (TNA)