Firms wary of debt amid US tariff woes

Companies have postponed the drawing down of new credit lines as they await clarity on US tariffs following the announcement of the 90-day suspension period, according to a Bank of Ayudhya (Krungsri) executive.

- SOMRUEDI BANCHONGDUANG

Prakob Phiencharoen, head of Krungsri’s corporate and investment banking group, said the bank is closely monitoring corporate loan demand for the remainder of the year, even though corporate loan growth met targets during the first quarter.

For 2025, Krungsri aims for corporate loan growth of 5-7%. As of March this year, the bank had expanded its loan portfolio by around 5%.

However, Mr Prakob admitted that if clients continue to delay investment decisions due to uncertainty surrounding US trade policy, it could put pressure on the bank's corporate loan expansion throughout the year.