Thai Asset Valuation Policy Near Completion.

Byline: Chatrudee Theparat

Aug. 1--The Thai Asset Management Corp is expected to finalise a valuation method for assets transferred from local banks today, according to Finance Minister Somkid Jatusripitak.

He said the TAMC board would meet to finalise a valuation method, and insisted that the organisation was on track to meet its target of transferring 300 priority cases to the state-owned agency by the end of the month.

The asset management coporation ultimately is expected to take over some 1.3 trillion baht in bad loans from state and private banks over the next few months.

But how to value the assets has been one sticking point. Under the TAMC Act, private banks will transfer loans at book value net of collateral, with a sharing scheme applied in the future if the assets post higher gains or losses than original projections.

But local bankers say that operational details remain to be worked out, such as how to account for the changes in asset values since Dec 31, the cut-off date for determining assets eligible for ...