The Finance Ministry of Thailand will expand the
first-home scheme to extend financing for home repairs to flood victims.
Deputy Finance Minister Viroon
Tejapaibul said yesterday that going beyond the original focus on first-time
home-buyers, the scheme would also lend to those in need of funds to repair
their homes. The loans could amount to a total of Bt5 billion (US$159 million)
out of Bt20 billion to be extended by the Government Housing Bank.
Under the scheme, the Bt5
billion to be loaned for home repairs will include purchase of furniture.
Borrowers can avail of zero interest for the first three years and borrow up to
Bt100,000 with no collateral and Bt300,000 with collateral.
Government Housing Bank
yesterday announced a pact with Home Products Centre for home-repair loans to
those buying furniture at the retail chain.
Viroon said the proposal would
be submitted to the Cabinet for approval next week.
Due to the severe floods, the
number of applicants for first-time home-buyer mortgages have been below
expectations despite the three-year zero interest rate.
Meanwhile, the massive flooding
that has hit several regions of Thailand has had an adverse impact on the
home-furnishing market, which is suffering from a severe slowdown in the fourth
quarter instead of experiencing a peak in sales as it usually does, according
to Kasikorn Research Centre.
This is because the flooding
expanded to the Central region, especially Bangkok and its suburbs, which are
the key hubs for furniture manufacturers and distributors.
The country's home-furnishing
market is worth about Bt55 billion this year and estimated at Bt60 billion next
year.
More than 700,000 households
have been damaged by floods, which will create an enormous demand for furniture
once the waters recede. The government's first-home stimulus package is also
expected to boost demand for furnishing products.
This explains why many
manufacturers have been active in setting up new stores, speciality outlets and
home centres. They are also improving the quality of their products, and
offering better after-sales service.
Kasikorn Research Centre
predicts that the total earnings of home-furnishing firms will amount to about
Bt55 billion, only a 3-4 per cent increase over the previous year.
Viroon also asked finance
officials gathering at a seminar in Chiang Mai to consider whether populist
schemes like rice-pledging, first-car and the small, medium and large fund for
villages need to be adjusted to make them more efficient.
For example, the Bank for
Agriculture and Agricultural Cooperatives should not demand the immediate settlement
of existing debts from farmers as soon as they receive funds from the
rice-pledging scheme.
These farmers should be able to
use all available funds in improving their farms, Viroon said.
A few have also applied for tax
refunds under the first-car scheme in the wake of the flooding.
As of the end of October, about
1,000 people had asked the Excise Department for tax refunds of up to Bt100,000
per buyer, Deputy Finance Minister Boonsong Teriyaphirom said yesterday.
The Finance Ministry originally
expected this scheme, launched in late September - before the floods hit
Bangkok - and scheduled to end in 2012, to boost car sales by 100,000 units.
Wichit Chaitrong
The Nation
Business & Investment Opportunities
YourVietnamExpert is a division of Saigon Business Corporation Pte Ltd, Incorporated in Singapore since 1994. As Your Business Companion, we propose a range of services in Consulting, Investment and Management, focusing three main economic sectors: International PR; Healthcare & Wellness;and Tourism & Hospitality. We also propose Higher Education, as a bridge between educational structures and industries, by supporting international programs. Sign up with twitter to get news updates with @SaigonBusinessC. Thanks.
No comments:
Post a Comment