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Published on April 23, 2008

Chankit Trakoolwilai

The Nation

After the first year, the floating rate will be adjusted to be equal to the minimum lending rate minus 0.8 per cent.

This rate will be applied throughout the term, said senior executive vice president Bundit Cheevadhanarak yesterday.

 The aim is to help ease the burden on borrowers with lower monthly instalments.

Borrowers can also opt to repay at the level equal to their current instalment to pay off the loan quicker, he said.

Also, borrowers are provided additional credit lines to cover other expenses, he said.

Meanwhile, the Thai Bankers' Association has moved to help reduce non-performing assets (NPA) of financial institutions, totalling more than Bt40 billion, by organising a "Baanbank" fair to attract buyers with discounts of 20-60 per cent.

The association, in cooperation with 11 financial institutions, is conducting a "Baanbank" roadshow in six targeted provinces.

Those provinces are Chiang Rai, Chiang Mai, Kanchanaburi, Surat Thani, Khon Kaen and Rayong.

It expects bookings made at the fair to total Bt18 billion.

Twatchai Yongkittikul, secretary-general of the association, said more than 3,000 listed NPAs nationwide - worth Bt40

billion - will be sold at the fair.

The country's total of NPAs was expected to reach Bt140 billion this year.

Of the amount, financial institutions will offload Bt40 billion and the remaining NPAs would be handled by the Legal Execution Department.

The association hosted a fair in Chiang Rai in February, drawing big crowds.

Buyers can place collateral

for 90 per cent of the mortgage amount with the bank at the

fair.

The association aims to secure more sales under "one roof".

Previously some of their promotions failed to attract much buying, Twatchai said.

The fair will help reduce outstanding assets of those financial institutions and ease their liquidity situation.

"If the property sector recovers, the economy should start to grow again," Twatchai said.

Singkhon Jirawongsawadi, head of the fair upcountry, said the next fair will be held in Kanchanaburi from Friday to Sunday.

More than 1,000 NPAs will be displayed with a combined value of Bt3 billion-Bt5 billion.

The fair will also offer NPAs in nearby provinces, including Nakhon Pathom and Suphan Buri.

Singkhon expects sales in Kanchanaburi to top Bt1 billion.