BAAC targets NPL rate reduction

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BANGKOK, 15 July 2013 The Bank of Agriculture and Agricultural Cooperatives (BAAC) is keen on reducing the number of its non-performing loans (NPLs) to 3 percent, down from the current 3.95 percent, by the end of this year. 

The BAAC has revealed that this year it will reduce the percentage of its non-performing loans, which currently stands at 3.95 percent, down to 3 percent. The BAAC also aims to reduce the proportion of the NPLs by 20-25 billion baht in 2014.

According to the bank, it has approximately 364,000 NPL accounts, with the total value of 32.7 billion baht. The bank is also considering restructuring loans for borrowers who are going through hardship or writing them off for those who died. Debtors with potential to repay their loan will have their loan repayment period extended for another year, requiring them to repay only 50 percent of their loan amount at this time, while the interest can be settled later on.

In 2012, the BAAC helped more than 10,000 farmers get out of NPLs worth 20 billion baht, enabling them to save up to 527 million baht in interest.