Exim Bank to sell B3 billion in bad loans to asset manager

Export-Import Bank of Thailand (Exim Bank) plans to sell 2.5 to 3 billion baht of non-performing loans (NPL) to an asset management company to strengthen its financial position, the president of the bank said, Rak Vorrakitpokatorn.

The amount represents half of the bank’s existing NPL portfolio. NPL’s sales are expected to reduce the bank’s bad debt rate to 3.5 percent, from the current 3.8 percent of its outstanding loan portfolio of 140 billion baht.

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

He said the level of NPLs is lower than in previous economic crises, when the bank’s NPL was 3.9% to 5%, suggesting that Exim Bank can handle the current situation and keep NPLs at a level. manageable.

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

Exim Bank tackles the problem of NPLs by helping its clients restructure their debt to prevent them from being classified as NPL. He is ready to provide liquidity to clients to jumpstart their businesses, he said.

The cabinet recently approved the capital increase by Exim Bank from 4.2 billion baht to 17 billion. The move should allow the bank to extend more loans to customers, Rak said.

He said Exim Bank is targeting an average annual loan growth of 11%, which is expected to bring its outstanding debt to baht 213 billion by 2025.

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