Overhauling Thailand's Financial System
BANK OVERSIGHT
Bank of Thailand examiners will be retrained by foreign instructors. A computerized payment system will help the central bank track offshore private debt. Thai banks will establish credit committees to approve loans. Loans will be listed as nonperforming when borrowers miss payments for three months.
BANKRUPTCY
Laws are being enacted making it easier for creditors to force insolvent borrowers into liquidation or to reorganize. A bankruptcy court is being established. Judges will be trained at a special school.
DEBT RESTRUCTURING
All but 23 of Thailand's 91 financial institutions have been shut. Foreigners may buy stakes in the survivors. The government is taking over and cleaning up weak banks. A new agency is securitizing billions of dollars in bad loans and selling them at discounts to foreigners.
DATA: BUSINESS WEEK
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