The mandatory minimum for bad-loan provisions is currently set at 150 percent of existing
nonperforming debt and the government could cut it to relieve some pressure on banks.
As hundreds of New Jersey's HUD, income- and age-restricted multi-family properties continue to operate in the face of escalating
nonperforming debt and exponentially accumulating interest, penalties and other fees, the brokerage specialists at Gebroe- Hammer Associates are negotiating trades of these over-leveraged-properties.
Approximately two-thirds of the loans in IBRA's portfolio were classified as
nonperforming debt.
As well, the transfer of 1.1 trillion yuan in
nonperforming debt off SOE books in the past year and heavy stimulus spending have given the state sector what some call a very artificial boost.
Ironically, though banks are re-entering the lending arena, their inventory of
nonperforming debt has created new opportunities for private lenders.
As of July 31, five state-owned commercial banks had the largest amount of bad loans, with a total of 918.83 billion baht in
nonperforming debt, the bank said.
31, six state-owned commercial banks had the most bad loans, 1.14 trillion baht in
nonperforming debt for about 65.27% of total credit within the sector, the Thai central bank said.
According to a CBE statement, the launching of the initiative comes within the framework of the CBE and banks' role in supporting economic development, and in order to solve the problems of
nonperforming debts and reduce the burden on small-scale customers who are serious about repayment, and returning them to economic activity.
Financial institutions are restricting lending because they are writing down growing amounts of
nonperforming debts and suffering from appraisal losses on their shareholdings.
