Thai Asset Management Corporation (TAMC) expects a recover rate of nearly 50 per cent

on bad loans worth more than Bt500 billion that were restructured under the Central Bankruptcy Court, according to its president, Somjate Moosirilert.

The state-owned collection company has purchased Bt776.24 billion worth of loans owed by 15,275 debtors since the middle of 2002. The loans of 7,966 debtors worth Bt527.26 billion have been restructured under the court's guidance. The rest of the loans were settled via receivership, Somjate said.

Of the Bt527.26 billion, Bt157.56 billion is being repaid in instalments, Bt65 billion is being paid down under asset transfer schemes, Bt36 billion is undergoing collateral disposal, Bt32.87 billion is being settled through a debt-to-equity swap programme and Bt26.45 billion was paid within six months of debtors signing their contracts. The remainder has been written off.

TAMC's income so far amounts to Bt104.2 billion. Of this, Bt89 billion has been was received though debt restructuring plans, Bt14.4 billion from selling non-performing assets (NPAs) and Bt795 million from selling assets through auctions.

"Of the 1,527 debtors who held debts, Bt48.87 billion has been collected through the debt restructuring plans.

In addition, TAMC has collaborated with both state and private financial institutions to seek refinancing and working capital to the tune of Bt12.16 billion to increase liquidity to 52 debtors, of which nine were already granted loans worth Bt277 million and the rests are under process," he said.

Somjate added that the TAMC had offered one year of no interest to debtors directly affected by the tsunami in December 2004 and the floods in the North earlier this year.

An interest rate of 1 per cent for one year is offered to those indirectly affected by these disasters.