Thailand eases loan rules

Thailand eases loan rules

BANGKOK (AFP): The Bank of Thailand said yesterday that it
would ease some rules concerning provisions for sub-standard
loans for finance companies.

Director of financial institutions supervision and development
Theerachai Puvanartnaranubala said the central bank would meet
representatives of the Association of Finance Companies this week
to discuss the provisions.

He said the talks would focus on definitions of loans
considered to be sub-standard.

The Thai government caused ripples in the financial sectors
when it announced new loan reserve requirements and capital
increases in March as part of efforts to shore up ailing finance
companies.

Many Thai finance companies have been saddled with billions of
baht in bad or doubtful loans, mainly related to the slumping
property sector.