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Sharp drop in collateral agreements
Requests for business collateral agreements fell by 36.2% last year as financial institutions and borrowers became more cautious about granting and requesting loans due to the ongoing economic regression.
Deputy Commerce Minister Weerasak Wangsuphakijkosol said the number of requests stood at 100,461, down from 136,841 in 2019.
The total value of assets used as collateral under loan agreements fell by 13% to 1.4 from 1.7 trillion baht.
The value decreased as a result of fewer business collateral agreements.
However, if infections are controlled this year, the registration of business collateral agreements should return to normal, said Mr Weerasak.
Three types of assets with the largest loss in value under collateral agreements last year were intellectual property, with its value falling by 100% due to no registration, followed by land assets, decreasing by 99.6%…
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