BoT orders SSI creditors to obey rules – The Bank of Thailand has instructed creditors of debt-ridden Sahaviriya Steel Industries Plc (SSI) to also set aside loan loss provisions for the parent company of SSI UK by the end of this month to comply with regulations. The lenders are required by law to set aside reserves for lending to the parent company, but after a 60% deduction of collateral value, said Ronadol Numnonda, an assistant governor of the central bank’s supervision group. Krungthai Bank (KTB), Siam Commercial Bank (SCB) and Tisco Bank must put aside 100% in reserves for the entire amount of 28 billion baht lent to SSI’s British subsidiary without deductions for collateral, he said. The full provision coverage for the SSI UK loan, however, is bound not by a rule but by a mutual agreement between the lenders and the central bank. The three banks lent a combined 48.4 billion baht to SSI and SSI UK. (Bangkok Post, 24/9/15)
FTI chairman Supant Mongkolsuthree said the Thai Industries Sentiment Index dropped to 82.4 in August, from 83.0 in the previous month, its eighth consecutive monthly decline. However, the sub-index on expectations on the next three months edged up to 102.0 from 101.2 in July. Scores above 100 indicate positive sentiment. (The Nation, 22/9/15 )
NSF seeks B1.5bn in new funding – The National Savings Fund (NSF) will ask for an additional 1.5 billion baht from the government to pay for the matching contributions for its members following higher-than-expected applications. (Bangkok Post, 22/9/15)
Super cluster ‘specials’ – High-tech industries in line for more tax perks. The government may offer special corporate income tax exemption for 10-15 years to major industries located in proposed “super clusters”. (Bangkok Post, 23/9/15)
UK interest rates likely to go up, says George Osborne – Chancellor says loose monetary policy to end due to UK and US economic success following suggestions China slowdown could keep rates down. British interest rates are more likely to go up than down thanks to the success of the UK and US economies, George Osborne has said, as he toured China to foster closer political and business ties. (The Guardian, 22/9/15)
Caixin flash China general manufacturing PMI hits 78-month low in September – The Caixin flash China general manufacturing PMI plunged to 78-month low at 47.0 in September from 47.3 in August, a preliminary Caixin survey showed on Wednesday. (Xinhua, 23/9/15)
The 28-nation European Union’s (EU) seasonally-adjusted current account surplus stood at 12 billion euros (13.65 billion U.S. dollars) in July, down from 14.6 billion euros in the previous month, the EU statistical office Eurostat said on Friday. (Xinhua, 18/9/15)
China injects 50 bln RMB into market – China’s central bank pumped 50 billion yuan (7.85 billion U.S. dollars) into the money market via reverse repurchase agreement (repo) on Tuesday, the first cash injection this week. The yield for the seven-day reverse repo stood at 2.35 percent, according to a statement of the People’s Bank of China (PBOC). (Xinhua, 22/9/15)
The China Banking Regulatory Commission (CBRC), the country’s top banking regulator, announced on Tuesday that it has revised the measures on commercial banks’ liquidity risk management, and the revised measures (fore trial implementation) will become effective as from October 1, 2015. The measures stipulate that commercial banks’ liquidity coverage ratio should reach at least 100 percent by the year of 2018. As a transition, the liquidity coverage ratio should reach 60 percent by end-2014, 70 percent by end-2015, 80 percent by end-2016 and 90 percent by end-2017. (Xinhua, 22/9/15)
DB cuts developing Asia growth forecast to 5.8 pct in 2015 – The Asian Development Bank (ADB) has slashed its economic growth forecast for developing Asia this year to 5.8 percent from 6.3 percent forecast in March. In its updated Asian Development Outlook 2015 released Tuesday, the Manila-based lending agency attributed the “headwinds” in developing Asia on currency pressures and worries about capital outflows. (Xinhua, 22/9/15)
