“The impact of the Map Ta Phut fiasco could be more severe to Thailand than the sub-prime crisis,” senior executive vice president Arthid Nanthawithaya said in an interview. These were the thoughts last week of some of the top executives at Siam Commercial Bank (SCB).
“Despite a limited impact from the loans extended to the companies involved, a huge weight hangs in potential investors' minds. If this fiasco is not ended peacefully, the investment climate will be affected severely.”
SCB has extended credit lines of Bt50 billion to the 76 industrial projects in question. The main borrowers are PTT, the Siam Cement Group and their subsidiaries. All Thai banks' combined credit line to the projects is estimated at Bt170 billion.