Bangkok: The Bank of Thailand is preparing targeted measures to help individuals and SMEs access credit more easily.
According to Thai News Agency, the Governor of the Bank of Thailand, Mr. Witai Rattanaporn, has expressed confidence in the country's economic outlook following the issuance of an emergency decree for borrowing 400 billion baht. This financial boost is expected to elevate Thailand's GDP growth to 2.1% in 2026 and prevent the nation from entering a state of stagflation. Inflation for the year is projected to reach 3.1% before stabilizing within the target range by 2027, with the central bank preparing measures to facilitate credit access for citizens and SMEs.
Mr. Rattanaporn noted that the Bank of Thailand has adjusted its economic growth forecast for the current year to 2.1%, up from 1.5%, while next year's projection has been revised to 1.6% from 2.0%. The inflation forecast for this year has also been increased to 3.1%, up from the previous 2.9%, but is expected to reduce to 1.4% next year. These adjustments indicate that the Thai economy continues to grow, with inflation predicted to decline and return to the BOT's target range of 1-3% by the second quarter of next year.
In addressing economic challenges, the Bank of Thailand is focusing on targeted strategies to enable easier credit access for individuals and businesses. This includes enhancements to the SME Credit Boost program, which aims to increase loan guarantees for SMEs, and the introduction of the Secure Plus measure, allowing SMEs to use land as loan collateral to improve liquidity. Additionally, the Bank of Thailand plans to announce changes to the fee structure of commercial banks by the end of this month to alleviate public financial burdens.
The Bank of Thailand forecasts that commercial bank lending trends in 2026 will not see significant recovery, aligning with the current economic climate. Commercial banks are maintaining a cautious approach to lending. The central bank is also evaluating whether to extend current interest rates and minimum payment requirements for credit cards and cash withdrawal cards, with the current minimum payment rate set to expire at the end of 2026.
Progress is underway for the establishment of three authorized Virtual Banks, anticipated to be operational within a year, with a possible extension for preparation requirements. At least two Virtual Banks are expected to be established by the end of this year, playing a vital role in distributing credit to grassroots communities and SMEs. Approved investment groups for these Virtual Banks include ACM Holdings Group, Krung Thai Group, and SCB X Group.