The Bank of Thailand downplays systemic risks, but regulators scramble to introduce tougher covenants to protect investors from high-yield stress.
Five Thai listed companies have defaulted on financial institution loans and corporate bonds worth a combined 546 million baht ($15.2 million), reigniting investor anxiety over the liquidity of the domestic capital market.
According to filings with the Stock Exchange of Thailand (SET), the defaults involve RS, Mono Next (MONO), East Coast Furnitech (ECF), Property Perfect (PF), and Grand Asset Hotels and Property (GRAND).
The firms cited severe cash flow constraints exacerbated by a prolonged domestic economic slowdown and high household debt, which continue to choke Thailand’s post-pandemic recovery.
The real estate sector emerged as the primary pain point, accounting for two of the five defaulting companies. Property developers have been hammered by contracting domestic purchasing power and a sharp rise in mortgage rejection rates by commercial banks, particularly among low-to-mid-market projects.
The SET has placed a “CB” (Caution due to Financial Position) tag on entertainment group RS after it defaulted on 317.37 million baht worth of promissory notes.
Meanwhile, media rival MONO missed payments on a 284 million baht trade letter of credit, triggering cross-defaults on its long-term bank loans.