Government unveils plan to rescue banks

Article Abstract:

Financial institutions in Thailand will be receiving funds from the government as part of a plan to restructure and recapitalize the country's ailing banks. The long-awaited plan received a nod from the Thai cabinet in a special meeting on Aug. 14, 1998. According to Deputy Finance Minister Pisit Leatham, the government will release 300 billion baht ($7.13 billion) in bonds to aid in the recapitalization of financial institutions that has not yet been taken over by the central bank. Under the planned nontradable government bond issue, 200 billion baht will be used to fund tier-one capital with swaps for preferred shares, while 100 billion baht will be for tier-two capital with swaps for subordinated bonds issued by financial institutions. Thai Finance Ministry said the government bonds will be issued at current market rates.

Comment:

Thailand: Financial institutions will be receiving funds from govt as part of plan to restructure & recapitalize ailing banks

Government domestic functions, Receipt of funds, Thailand, Economic Development Program, Other General Government Support, Article

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Signpost for Asian banks: merge ahead

Article Abstract:

Private sector mergers and acquisitions activity in Asia has not increased contrary to predictions made at the height of the currency crisis in mid-1998. The relative inactivity in Asia, however, is deceptive. Restructuring of the financial sector will proceed as expected and a flurry of Asian bank mergers will in all likelihood occur by 2001. The key players in the consolidation process are likely to be companies with a long-established presence in Asia such as Citibank, HSBC, OCBC of Singapore and Standard Chartered.

Forecasts, trends, outlooks, Asia, Banking industry, Mergers, acquisitions and divestments, Acquisitions and mergers

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