Exim Bank to sell B3bn of bad loans to asset manager

Exim Bank to sell B3bn of bad loans to asset manager

Export-Import Bank of Thailand (Exim Bank) plans to sell 2.5-3 billion baht of non-performing loans (NPLs) to an asset management corporation to strengthen its financial status, says bank president Rak Vorrakitpokatorn.

The amount accounts for half of the bank's existing NPL portfolio. The NPL sales should reduce the bank's bad debt ratio to 3.5% from the current 3.8% of its outstanding loan book of 140 billion baht.

Mr Rak said some of the NPLs are the result of the impact of the prolonged pandemic on customers.

He said the NPL level is lower than during previous economic crises, when the bank's NPL was at 3.9%-5%, suggesting Exim Bank can handle the present situation and keep NPLs at a manageable level.

The Bank of Thailand also introduced measures to help banks provide debt relief and financial assistance to clients, said Mr Rak.

Exim Bank is tackling the NPL problem by helping clients restructure debt to prevent them from being classified as NPLs. It stands ready to provide liquidity to clients to revive their businesses, he said.

The cabinet recently approved Exim Bank increasing its capital by 4.2 billion baht to 17 billion. The move should allow the bank to provide more loans to customers, said Mr Rak.

He said Exim Bank targets average annual loan growth of 11%, which should result in its outstanding loans growing to 213 billion baht by 2025.

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