"The country's economic slowdown has lowered customers' ability to repay debts. As a result, we would like to ask the Bank of Thailand (BOT) to decrease the minimum payment," said senior vice president Thawatchai Thitisakdiskul.

He said some credit-card providers who were members of the Credit Card Club agreed with this proposal. Thus, the issue will be discussed among club members, and the club will propose the measure to the central bank.

For new cardholders, the minimum credit-card payment per payment period is set at 10 per cent of the total outstanding loan for each customer, implemented for three years.

The minimum payment for customers approved for credit cards prior to that regulation being implemented is only 5 per cent. However, this respite from the requirement for existing customers is due to expire at the end of the year.

Thawatchai said his company wanted the BOT to extend the minimum 5-per-cent payment for existing customers and reduce the minimum payment for customers approved after the announcement from 10 per cent to five per cent.

He said that amid the economic slowdown, the debt-default rate of his company's customers was likely to rise, although it was expected to be insignificant.

Currently, the company's non-performing loans stand at around 1 per cent of total loans.

Currently, the company's total credit cards number 1.2 million, expected to increase by 250,000 this year.

In addition, Thawatchai said the cost of funds, on average, stood at 6 per cent, up 4 per cent from last year's 2 per cent. This is line with rising domestic rates.

Somruedi Banchongduang

The Nation