State-owned GH Bank expects loans worth 4.5 billion baht to turn into non-performing loans (NPLs) in January from 9 billion baht in loans borrowed by debtors classified as having fragile debt-servicing ability.
Only 50% of debtors clustered in a group with fragile debt-servicing ability are expected to repay their debts, said president Chatchai Sirilai.
The bank’s debt moratorium programme will end on Jan 30, 2021.
The total amount of loans in GH Bank’s debt moratorium programme is registered at 90 billion baht. Of this amount, 9 billion baht are loans taken out by the fragile debtor group.
This group is considered as having the most NPL exposure, said Mr Chatchai.
The bank is preparing to set aside loan loss reserves worth 5 billion baht to safeguard against potential bad loans of 4.5 billion baht.
GH Bank will also contact every customer in the fragile debtor…
