Thai central bank says housing loan rules still necessary

[BANGKOK] Thailand's central bank believes mortgage rules are still necessary and are not a problem for the property market, an assistant governor said on Thursday.

Housing developers have urged the central bank to remove the loan-to-value (LTV) rules to help boost purchasing power and to lessen the impact of the coronavirus pandemic on the sector.

The LTV ratio rules, which had been relaxed twice, are still appropriate and will help curb risks in the sector, Nawaron Dejsuvan said in a statement.

Despite the outbreak, mortgage loans increased 4.4 per cent in the second quarter, a faster pace than the prior period, she said.

"Given high uncertainty, the central bank will closely monitor the property market," Ms Nawaron said.

Last year, the central bank imposed tighter loan regulations on concerns about high household debt but later relaxed them to help home buyers.

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REUTERS