(Thai) Annual Report 2005 - United Overseas Bank

Term of repayment according to the restructuring agreements
THE BANK ONLY
Debt Balances (Million Baht)
Number of Before After
debtors restructuring restructuring
Not more than 5 years 3,922 5,003 3,174
5 - 10 years 175 939 246
10 - 15 years 125 150 155
More than 15 years 119 214 241
Total 4,341 6,306 3,816
As at 31 December 2005 and 2004, the troubled debtors for which the Bank completed the restructuring can be
summarised as follows :-
(Unit : Million Baht)
THE BANK ONLY
Number of Debt balances
debtors after restructuring
Balance of restructured debts up to 31 December 2005 8,456 7,903
Balance of restructured debts up to 31 December 2004 4,286 7,841
9.9 Transfer of Assets to the Thai Asset Management Corporation (TAMC)
On 12 October 2001, the Bank entered into an agreement with the Thai Asset Management Corporation (TAMC)
to transfer non-performing loans in accordance with the Emergency Decree on the Thai Asset Management
Corporation B.E. 2544. Under the agreement, the Bank will receive a ten-year non-transferable promissory note
avaled by the Financial Institutions Development Fund, which beared interest at a rate based on the quarterly
average deposit rate of the 5 major Thai commercial banks payable annually on the last working day of the
year. The face value of the promissory note will be determined based on the lower of (a) the collateral value or
(b) the net book value of the loans including three months accrued interest receivable as determined by the TAMC.
In accordance with the Emergency Decree on the Thai Asset Management Corporation B.E. 2544, the TAMC
and the Bank will jointly be responsible for any profits or losses arising from managing the impaired assets
in accordance with the conditions specified in the agreement at the end of the fifth year and at the end of the
tenth year commencing 1 July 2001. The calculation of such profits or losses shall take into consideration the cost of
transfer and all operating expenses of the TAMC, including interest on the promissory note. In the event that the
TAMC incurs losses on the impaired assets transferred to it by the Bank, the Bank will be responsible for the first
portion of losses, not exceeding 20% of the transfer price. The second portion of losses, not exceeding 20% of the
transfer price, will be equally shared between the TAMC and the Bank. The remaining losses will be absorbed
by the TAMC. In the event that the TAMC makes profits on the impaired assets transferred to it by the Bank,
United Overseas Bank (Thai) Public Company Limited 63