The delay in the establishment of the new government may lead to a lack of confidence among financial institutions, which in turn could impact the consideration and approval of home loans, according to SET-listed developer L.P.N. Development.
Varish Meemaun, financial and investor relations manager, said the delay could affect government budget spending, subsequently impacting the overall economic recovery in the second half.
"If banks lack confidence in releasing home loans or perceive that the economic conditions have not sufficiently recovered to boost purchasing power, they may tighten loan approval criteria," he said.
