Warning signs of a potential financial crisis in Thailand have been highlighted in this article. While the previous crisis in 1997 was caused by bank failures, this time it is anticipated that defaults on corporate bonds and commercial papers could trigger the crisis.
The low cash positions of corporations, combined with limited liquidity for refinancing maturing bonds, create a precarious situation. The postponement of bond payments by Italian-Thai Development (ITD) serves as an example of the challenges faced by companies.
The projection of 3.2% GDP growth is deemed unrealistic without a substantial increase in money supply, which is unlikely to happen. The article raises concerns that Thailand could be heading towards a financial crisis similar to 1997 if these issues persist.
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