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STREET WISE: Making them an offer they can`t refuse MEMO to debtors from Krung Thai Bank: Be not afraid, even if you haven`t serviced your debts for longer than a year - the bank is there to help. KTB, the country`s largest state-owned bank, yesterday circulated a press release in a bid to reassure its non-performing loan (NPL) debtors with a bit of sweetness and light. "So far, several customers have been discouraged from negotiating for debt restructuring with the bank, leaving their debts unpaid for a long time," KTB president Singh Tangtatswas` conciliatory message began. "If they contact and consult the bank for a business and repayment plan, they will be able to service their debts," the president continued. "They will also be able to receive additional loans from the bank. So don`t be afraid to contact us as soon as possible - we can settle a solution together." Singh added that debtors could negotiate with the bank at any time - even though their cases are currently under legal proceedings. "We are willing to compromise with every debtor, but they must have the financial discipline to make business viable," the bank said. Singh said it is KTB`s policy to help every customer with an NPL but the customer must take the initiative to contact the bank`s staff for the negotiation. With several centres of debt restructuring nationwide, KTB provides well-trained staff that can provide the advice debtors need for the best solution, he said. According to Bank of Thailand rules, debtors who fail to service debts for more than 12 months are subject to legal action by the banks. By KTB`s reckoning, however, that shouldn`t prevent customers from keeping in touch with the bank`s staff. Isn`t that reassuring? - The Nation. * * * Let`s sleep on that one, honey WHILE investors around the world hold their collective breath in anticipation of a US economic slowdown, the man who has the most to say about these developments is feeling the pressure. Federal Reserve (Fed) chairman Alan Greenspan would, after all, be on the hot seat if the slowing US economy failed to pick up. However, not even this serious matter can diminish Greenspan`s sense of humour. During a recent session of the US Senate Budget Committee, the fed chairman was asked what he thought of reports of the US economic slowdown by the American media - was the coverage too pessimistic about the US economy? Greenspan said he could not answer the question due to a conflict of interest. The conflict was not between he and the country but between he and the reporter asking the question, NBC newswoman Andrea Mitchell. Mitchell is Greenspan`s wife. - The Nation. * * * Creativity needed to escape NPL mire COMMERCIAL banks have been under pressure from social activists as well as politicians to narrow the gap between lending and deposit rates. Prime Minister Thaksin Shinawatra himself has urged banks to squeeze the interest rate spread down to 3 per cent from the current 5 per cent. However, the needed shift is constrained by the enormous amount of non-performing loans in the banking system, which currently stand at 18 per cent, down from the peak of 47 per cent a few years ago. Such mushrooming bad loans would likely prompt the resignations of bank presidents from developed markets, as no First World bank could remain viable with such high problem loans. But Thai bank chiefs remain in their chairs, as all of them are caught in the same gloomy mire. The state-backed Thai Asset Management Corporation (TAMC) might be one solution, but all are in consensus that the central AMC is not a panacea. But with a sweet enough deal, banks might once again be asked to lower lending rates and hike deposit rates. Whether they do it or not, some of them - including DBS Thai Danu Bank, Krung Thai Bank, and Bank Thai - have finally done something to relieve the pressure. Some banks, mostly state-owned ones, recently introduced a special deposit account program for customers aged 55 years and older. The senior depositors, subject to a minimum deposit requirement, will be offered 25 to 50 basis points in addition to normal time deposit rates. Siam City Bank, a nationalised bank, recently offered a 3.75 per cent interest rate plus free health insurance for long term deposits, and 24-month deposits on a 4 per cent interest rate. Many are suspicious of this campaign by the banks, as such programmes are not being offered for everyone. Bankers, of course, would say it`s better than nothing. - The Nation 15.3.01 - |
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| aus der Diskussion: | Waste or make money in Thailand |
| Autor (Datum des Eintrages): | BodyG (14.03.01 19:41:43) |
| Beitrag: | 529 von 611 (ID:3101604) |
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