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.