SME Bank is confident that the FRCD judgment will not affect the case, insists on submitting the case to the Supreme Court

Mr. Mongkol Leelatham Managing Director Small and Medium Enterprise Development Bank of Thailand (SME Bank or SME Development Bank) revealed the progress of the case. Standard Chartered Bank (Thai) Public Company Limited (SCBT) is the plaintiff filed a lawsuit against the Bank of Thailand as a defendant for damages under the cross currency swap and CCS derivatives contracts. Hedging interest rate risk (Interest Rate Swap /IRS) on certificates of deposit in floating interest (FRCD) amount of cases with total capital of approximately 6,000 million baht against the Civil Court, totaling 3 cases in 2008 and 2009, the Court of First Instance issued a judgment on October 27, 2015 for the Bank of Thailand to win the case by dismissing all 3 cases. Later, the plaintiff filed an appeal. The Court of Appeal has issued a judgment on June 22, 2017, considering that the Bank of Thailand pays the judgment debt according to the said amount.

Managing Director of the Bank of Thailand added that “In the case of such disputes It is a transaction that has been going on since 2006 and has since been fought at the Court of First Instance and the Court of Appeal. As a result of the Appeal Court’s verdict, the Bank will continue to exercise its right to defend the case in the Supreme Court. As for the outcome of the case, SME Bank is pleased and ready to comply with all judgments. As for the bank’s financial position, it is strong at the end of 2016. The bank has a profit of 1,600 million baht. It still has capital and excess debt reserves to cover losses that are sufficient and exceed the BIS Ratio according to the Basel’ criteria. At 8.5 percent, the bank now has a Tier 1 fund at Mar. 2017 at 11.55%, and in the event of an increase in asset value in a Tier 2 fund, a Tier 1 and a Tier 2 fund will be combined to become 12 percent, which will strengthen the financial position Enough to pay debts according to the damage that may occur if the result of the judgment allows the Bank of Thailand to pay the debt without affecting the financial status of the Bank of Thailand and the depositors or creditors are not affected as well As well, the Bank of Thailand can continue to operate according to the mission plan of small entrepreneurs in 2017 as usual, including being ready to respond to government policies to drive the economic foundations to move forward. Bank of Thailand case confirmed that it will fight in the Supreme Court because they believe in justice And there is important evidence that can be raised to fight cases on many issues that are beneficial to the bank. The process of filing a petition will take place within 30 days.”

The bank has reported such information. to the Board of Directors Ministry of Finance Ministry of Industry Bank of Thailand has been informed.

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