Krungthai targets sale of Bt8 bn in NPAs this year after 2013 success

Economy January 07, 2014 00:00

By The Nation

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Krungthai Bank Plc plans to sell at least Bt8 billion worth of non-performing assets this year after succeeding in disposing of NPAs worth Bt9 billion-Bt10 billion last year.

Suchart Dejittirut, executive vice president and director of the credit restructuring and asset management department, said yesterday that the NPAs sold last year can be divided into 35 per cent vacant land, 30 per cent business operating assets and 25 per cent housing.
Last year, KTB held Bt60 billion worth of NPAs, now there is less than Bt30 billion remaining, thanks to the department’s strategy of improving cooperation with 1,200 agencies countrywide.
KTB will continue to strengthen NPA sales this year via the setting up of the “KTB NPA Plus” project and the launch of an educational programme that will invite architect students to design and decorate NPA properties. 
Extra value 
These programmes and activities will provide extra value for NPA buyers and are a good use of the bank’s available economic assets.
Investment in NPAs will continue to flourish this year because buyers can use their properties for commercial purposes and their value will rise in parallel with the increase of investment, but it would not affect most of the previous NPA holders.
The global economic recovery and the opening of the Asean Economic Community will boost domestic and foreign investment in special economic zones and the Greater Mekong Sub-region, and Thailand is perfectly placed in the area to gain the most from the predicted real estate boom in this region, he added.