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[Garcia]

"Bandid Nijathaworn, deputy governor of the Bank of Thailand, has predicted that non-performing loans will continue to create pressure for commercial banks during the remainder of the year, although the situation will improve early next year.

He warned banks against aggressive competition in lending, saying pressure from bad loans will remain until year-end as the economy has still not fully recovered. NPLs in the second half will, therefore, remain high, he said.

Banks reported that their NPLs at the end of the second quarter were about Bt14 billion higher than at the same time last year.He said the main reason was the economic slow-down and tighter reserve-provision requirements.

Most bad loans are re-entry NPLs, or those which were successfully restructured but have since returned to NPL status."

http://www.nationmultimedia.com/2007/07/26...ss_30042467.php