The Finance Ministry is advocating for collaborative investments between Specialised Financial Institutions (SFIs) and Asset Management Companies (AMCs), proposing the formation of joint venture asset management companies (JV-AMCs). This initiative aims to aid debtors who collectively hold three million accounts amounting to a total value of 230 billion baht, stated Paopoom Rojanasakul, the secretary to the finance minister.
Rojanasakul explained that the formation of joint ventures, where both SFIs and AMCs hold an equal 50% control, will address the ongoing issue of SFIs’ limitations in managing non-performing loans (NPLs). Current regulations prevent SFIs from agreeing to debt haircuts, leading to the accumulation of retail NPLs. Moreover, the cost of debt collection often outweighs the value of the debt itself, resulting in chronic bad debts within SFIs.
A Cabinet resolution…
