Asian Amex card debts minimal<\/p>\n
SINGAPORE (Reuters): American Express Co's (Amex's) exposure
\nto bad debts in its Asian credit card business is minimal, the
\nfirm's top regional executive said yesterday.<\/p>\n
"Our credit losses in most markets other than two markets are
\nactually better than last year at the present time," Vijay
\nParekh, Amex Asia-Pacific-Australia president told Reuters.<\/p>\n
He said Malaysian and Indonesian bad card debts had worsened
\n"about 15 percent on a year to date basis", but said the figure
\nof potential write-offs for credit and charge cards was small.<\/p>\n
"Taking total billings, close to two to 2-1\/2 percent level
\nwill be a write off for those two countries," Parekh said, adding
\nthat he expected losses to be contained at "no more than
\nUS$500,000 combined".<\/p>\n
Indonesia has been a focal point of an Asian economic crisis
\nthat has seen the International Monetary Fund back rescue deals
\nto the region of more than US$100 billion since July 1997.<\/p>\n
Amex announced group provisions of US$213 million in its 1998
\nfirst quarter results revealed in April, the bulk of which the
\nfirm said was for its Asia-Pacific exposures.<\/p>\n
American Express Bank had about US$3.7 billion outstanding in
\nloans and other exposure in the Asia-Pacific region on March 31,
\ncompared to US$4.3 billion at the end of 1997.<\/p>\n
Parekh said the company's card business in Indonesia was small
\nand was satisfied it had adequate underwriting and risk
\nmanagement practices in place to ensure its exposure would remain
\nminimal, despite the company's active drive for new card business
\nin the crisis-hit Asian region.<\/p>",
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