Government Savings Bank (GSB) stated that it is preparing to establish a JV AMC as it awaited approval from the Bank of Thailand (BOT), while also negotiating with BAM and SAM to only choose one of them to be a joint venture with an investment proportion of 50%.
The Ministry of Finance foresaw the establishment of JV AMC in the first quarter of 2024.
BAM’s directors disclosed that the company will await the amendment of the regulations regarding the establishment of joint ventures with government banks while stating its readiness to begin the process of loan management.
The Thai PM showed the latest numbers for informal debt management, solving 12,000 cases and reducing the loan value by THB 670 million from THB 9,800 million.
Mr. Lavaron Sangsnit, Permanent Secretary of the Ministry of Finance, stated that the Bank of Thailand (BOT) is currently in the process of making an announcement about the establishment of joint ventures between specialized financial institutions of the government and asset management companies.
Government Savings Bank (GSB) is in the process of discussing the establishment of a JV AMC with a state-owned asset management company, which is expected to be completed within the first quarter of 2024.
Mr. Vitai Ratanakorn, President and CEO of Government Savings Bank, noted that the bank had been discussing with Bangkok Commercial Asset Management Public Company Limited (BAM) and Sukhumvit Asset Management Company Limited (SAM) with a condition of 50% shareholding as the companies and the bank were all affiliated with the government.
Currently, GSB is mainly awaiting the criteria for the establishment of JV AMC from the Bank of Thailand (BOT).
The reason that the bank did not sell bad loans to the existing asset management companies is that the current non-performing loans could not be sold at high prices and were often cut down. Therefore, the solid option would be to sell clean loans through JV AMC with the estimated value and take a moderate level of loan for the bank to be able to close an account.
