Business loan application last year grew only 2%, the lowest in a seven-year period, the Bank of Thailand revealed.
But for this year, loan application will rise significantly, it said.
Somboon Jit-Penthom, the assistant governor of the Bank of Thailand, revealed that business loan applications in 2016 grew by only 2%.
This is much lower than the 4.3% growth recorded in 2015 and represents the lowest growth figures in a 7 year period since 2009.
He said in that year loan applications contracted by 1.7% which was brought about by the US financial crisis which resulted in the global economic downturn.
During that period business loan applications grew by only 0.6% while applications for corporate loans contracted by 1.1% over the previous year.
SME loans only grew by 1.8% and overall most of the contraction was restricted to the industrial and real-estate sector, he said.
Meanwhile Bank of Thailand (BOT) governor Wirathai Santipraphob said that commercial loans applications this year will see a significant increase over last year which only grew by 2%.
This was driven mainly by a rise in long-term bond interest rates which saw many private business mobilising funds through issuing fixed income securities and debenture stocks last year because of low interest rates.
More and more investors will be applying for bank loans this year seeing as many will want to expand and increase their production capabilities and while others will want to make increased investments in major construction projects.
Source: Thai Public Broadcasting Service (Thai PBS)