"The central bank is allowing banks to set up their own [asset] warehouse to manage NPAs, rather than setting up a centralised warehouse," said the source. "Such an asset warehousing model should shore up confidence for hotel business operators because the asset management is handled by their creditors." Business operators who transfer their assets to an asset warehouse and wish to buy them back at a later stage would want to generate liquidity to repurchase the asset, said the source. Under the asset warehousing model, there would be expenses in three core areas, said the source. The move would reduce principal and interest burdens shouldered by hotel business operators and beef up financial liquidity, according to the think tank.

Source: Bangkok Post February 19, 2021 23:48 UTC