New entity to manage most of IBank’s non-performing financing
The Cabinet on Tuesday gave the go-ahead for the Finance Ministry to set up an asset management company (AMC) to manage Bt47 billion worth of non-performing financing (NPF) of the Islamic Bank of Thailand, representing 43.4 per cent of the bank’s outstand
The Bt47 billion is financing that was directed to non-Muslims. Currently IBank holds more than Bt50 billion in NPF, of which about Bt3 billion was borrowed by Muslim clients.
The AMC will be wholly owned by the Finance Ministry, which believes the new entity will increase the confidence of potential partners who plan to invest in IBank.
The Cabinet also gave its approval for the ministry to inject Bt2.5 billion in capital to increase IBank’s liquidity, Kobsak said.
