Thai finance minister says credit access more important than rates
Adds detail, quotes from paragraph 4-9
BANGKOK, Dec 19 (Reuters) -Access to credit in Thailand is more important than interest rates in boosting an economy that is growing below its potential, the finance minister said on Thursday, adding growth should reach 2.7% to 2.8% this year.
Speaking at a business event, Pichai Chunhavajira said he wanted to see growth of 3% to 3.5% in 2025 and expects the economy to expand 4% in the final quarter of this year.
He was speaking after the central bank held its key interest rate steady at 2.25% on Wednesday.
"Business people don't care about interest rates. They care about whether they can access capital," Pichai said.
Digital technology will help connect lenders and borrowers, which would lead to investment and consumption that would enablethe country to move forward, he said.
Recent government debt support measures will help reduce bad loans and allow people to access credit again, while state-owned banks will also provide more soft loans, Pichai said.
Southeast Asia's second-largest economy is improving after last year's 1.9% growth, Pichai said.
"This is a good sign. There will be a good atmosphere," he added.
Tourism and consumption will continue to drive the economy in 2025, along with exports and investment, he said.
The tourism sector, a key of Thailand's growth, is expected to receive 36 million foreign tourist arrivals this year and 39.9 million in 2025, Pichai said.
There wasa record of nearly 40 million foreign tourists in 2019, before the pandemic.
Reporting by Orathai Sririg; Kitiphong Thaichareon and Thanadech Staporncharnchai; Writing by Martin Petty; Editing by John Mair
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