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Financials

Thai banks say exposure to Dubai small

BANGKOK, Dec 1 (Reuters) - Thailand's top lender, Bangkok Bank BBL.BK, said on Tuesday it had lent $50 million through a syndicated loan to Dubai World Group Finance, a subsidiary of Dubai World Corporation [DBWLD.UL].

It said the loan represented just 0.10 percent of its total assets.

The bank had loan loss reserves of 63.7 billion baht, equivalent to 112.1 percent of its non-performing loans at the end of September, it told the stock exchange, saying this was “sufficient to cover any potential losses”.

The Bank of Thailand said on Monday that Thai firms had only $140 million in exposure to Dubai. [ID:nBKT003143]

Number three Siam Commercial Bank SCB.BK (SCB) told the stock exchange it had financially supported one hotel and one hotel-and-residence project in Thailand in which a subsidiary of Dubai World was a partner.

“Both hotel projects are performing and collateralised,” SCB said, adding the exposure under these two projects represented less than 0.1 percent of the bank’s total assets.

Fifth-ranked Bank of Ayudhya BAY.BK has said it had exposure of $25 million through a syndicated loan to Dubai World Group Finance. The loan represented 0.11 percent of its assets.

Click on [ID:nGEE5A02FN] for Dubai Debt crisis news. ($1=33.20 Baht) (Reporting by Arada Kultawanich; Editing by Alan Raybould) ((arada.kultawanich@thomsonreuters.com; +662 648 9732, Reuters Messaging: arada.kultawanich.reuters.com@reuters.net)) ((If you have a query or comment on this story, send an email to news.feedback.asia@thomsonreuters.com))

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