BANGKOK, 9 May 2013 The Finance Ministry has approved a 6-billion-baht fund for recapitalization of the Islamic Bank of Thailand, of which the ministry is the major shareholder.
According to the Islamic Bank managing director, the Finance Ministry has given the green light to a project aimed at reviving the bank after it has been plagued by the problem of non-performing loans (NPLs). Out of the 6-billion-baht rehabilitation fund, 3 billion will come from the ministry itself, and the rest from the Government Savings Bank and the Krung Thai Bank, which are shareholders of the Islamic Bank.
The director further revealed that the first allocation of 920 million baht under the rehabilitation scheme will be made to the Islamic Bank in June. However, the second batch of 3 billion baht has yet to be approved by the parliament and is subjected to parliamentary cuts, depending on the needs for money by other units.