Looking back, looking at the past, financial business - banking - Thai capital market Looking towards the future (Part 3)

During the period of General Prem Tinsulanonda as a government, there was a change in economic policy from a fiscal model to an austerity model from 2525 until 2526 and there was a devaluation of the baht in Year 2527, including an important change in exchange rate policy. This makes this period a period that allows Thailand to recover from the economic recession. It is also an important basis for economic prosperity later on.

After presenting my study and working experiences in Part 1 (2514 to 2523), this article will continue in Part 2.

Period 2 (2523 to 2533): Bright Opportunities 

This period was the period when Thailand entered an era of prosperity. And there is strength in both the energy and industrial sectors and significant economic growth. And at the same time, Thailand discovered the Erawan natural gas field. There has been industrial expansion because Japan has moved most of its production base into the Eastern Seaboard project.

This is due to the decision to start developing the project during the reign of General Prem Tinsulanonda, when General Prem was the government. There was a change in economic policy from a fiscal model to an austerity model from 2525 until 2526, and there was a devaluation of the baht in 2527, including adjustments. Important exchange rate policy This makes this period a period that allows Thailand to recover from economic recession and also serves as an important basis for economic prosperity later on.

Meanwhile, in 2526, there was another crisis among finance companies and commercial banks. Because it is lending money to one's own affiliates without collateral. Fake accounts receivable were created. causing those companies to face liquidity problems After the incident had already happened in the year 2521

In 2526, the Bank of Thailand took control. Finance and Securities Development Company (Dum Building Company) is one company that has had a continuous impact since 2521 and still has illegal operations. In addition, there was also a pyramid scheme called Share Mae Chomoi until 2526. .2527 until a law had to be enacted as the Emergency Decree on Borrowing that is Fraudulent to the People, B.E. 2, and even then, there was still pyramid scheme lending. Until the present and the authorities have had to use this law with 2534 additional amendments in the years 2545, XNUMX until the present.

Finance company crisis

In 2527, it was the origin of the 4 April Project measures that provided assistance to promissory inspectors and various measures were issued. The 4 April Project was a project that provided assistance to financial institutions by allowing the authorities to have Ownership and responsibility for management but adhering to the principle that Owners and related persons of the financial institution must voluntarily participate in the project. It appeared that at that time there were a total of 25 financial institutions or finance companies volunteering to join the project.

commercial banking crisis

During the year 2527, Asia Trust Bank It is considered to be the first bank that the government went in to correct and change its name to Siam Bank Company Limited because there was a problem with a high number of impaired and damaged assets. Bank executives have requested assistance. The Bank of Thailand therefore went into administration. Asia Trust Bank By providing conditions for transferring not less than half of the shares and voting rights to government service and has Ordered a capital reduction to cut losses in 2528 and provided assistance to provide liquidity.

And 3 years later, after 2531, Siam Bank still encountered severe problems to the point of being unable to operate. The Bank of Thailand therefore ordered the entire business to be transferred to Krung Thai Bank.

In addition, in 2530, the rehabilitation fund had to go in to help Nakornthon Bank Public Company Limited, which had an impact from 2516 to 2527, as well as Asia Bank Public Company Limited, which The government had to help in 2531 as well.

At that time in the year 2527, the Bank of Thailand was enacted to establish a fund for the rehabilitation and development of the financial institution system. Also known as (FIDF), this is a fund that later played an important role in solving the 2540 crisis.

After that, when the government of General Chatchai Choonhavan took over the position of Prime Minister after the election on 24 July 2531, the government of General Chatchai Choonhavan received the results of structural adjustment. Thai economy since the time of General Prem Tinsulanonda. Thailand at that time had an economic expansion of 9.5 percent compared to the year 2500 and in the year 2511 the economic expansion Income rose to a maximum of 13.2 percent, despite some reductions in expansion. But it was at a rate of 2 digits all the time. At that time, Thailand was expected to be the 5th tiger of Asia from Hong Kong, Singapore, South Korea, and Taiwan. But it was something that no one expected that Thailand would have to experience a bubble bursting in 2540. XNUMX

In 2533, the Thai financial system changed with a new interest rate structure. Both interest on deposits of commercial banks that allows the abolition of the interest rate ceiling on fixed deposits to floating interest rates The lending authority has increased the lending rate significantly from 15 percent to 15 percent per year, including setting the interest rate on housing for low-income earners who borrow no more than 50 baht for each 15 years.

At that size the interest rate was very high. In 2533, liquidity was in the system and the banks refused. Items providing loans to retail customers and the issue of giving interest according to the law until they borrowed foreign currency and then deposited the interest in Thailand up to 18 percent, with the interest rate being adjusted 2 times, which is one of the causes of the Tom Yum Kung crisis that occurred in 2540. XNUMX

During the years 2523 to 2534, laws were enacted. Finance and banking that are very important are the measures of the Bank of Thailand of the 4 April 2527 Project and the establishment of the Fund for the Rehabilitation and Development of the Financial Institution System. Also known as FIDF in 2527

After the period 2523 to 2533: My work experience with studying and working abroad.

As I said in the previous article. When in the year 2525 I had the opportunity to go I also worked in Singapore at Baker & McKenzie's office in an exchange program called Associate Training Program, and at that time the office intended to have me as a representative of the office. To provide services to foreign investors who are interested in setting up companies in Thailand, also known as Thai Desk.

But it was not very successful. Because the global economy has problems, in addition to sending me to practice using English. Because I did not graduate with a master's degree from abroad.

During that time, Singapore was experiencing an economic downturn. To the extent that some hotels have no guests staying at all. And it was a time when Singapore was just starting to build a subway. It's unbelievable that Singapore is now more developed than Thailand and we can't keep up.

Going to work in Singapore The time I spent in Singapore for almost 1 year was a very valuable experience. I learned about the laws of Singapore. I met lawyer friends from many countries, such as England, Hong Kong, the Philippines, Canada, Singapore, who came to follow an exchange program called the Associate Training Program of Baker & McKenzie. Later, those lawyer friends became partners. of Baker & McKenzie and have worked together on many projects. This is an important part of Baker & McKenzie's culture, and in addition, I met many senior people in business and government, creating relationships that supported my work later on.

Another by-product of working in Singapore was that I was able to do my dissertation. and graduated with a Master of Laws degree of Chulalongkorn, graduating in 2527 with a thesis on the topic “Applying Thai law to international borrowing”. This matter of foreign borrowing can be considered The Baker & McKenzie office was the first office in Thailand pioneered by Mr. Athuek Asavanan (who was a partner of Baker & McKenzie at the time) to have a loan agreement. international In the private sector for the first time I understand that it is a loan project of Thai Oil which is Project Finance and Krung Thai Bank that issues financial instruments (Floating Rate Note (FRN)) in the international market.

Later in the year 2529, I also received a scholarship from Baker & McKenzie Head Office, for the first time allocating 3 scholarships to lawyers in each country, and I was a lawyer from Thailand. I chose to continue my education. at the University of British Columbia, Vancouver, Canada because they did not have a TOEFL score to apply to study at a famous university. in the united states

By studying a master's degree in Canada Makes you have to do a thesis. It made me have to study very hard. Until I finished writing my thesis Legal Aspect on Countertrade under Thai and Canadian law, and since then, there have never been any Thais studying here again. Therefore, I am the only Thai person who graduated from UBC and I would never recommend anyone to study here again. For the reason that having to do a dissertation is very difficult for international students.

The reason I chose this topic was because at that time Thailand was having an economic crisis and education regarding reciprocal purchase contracts. Or exchanging goods called Barter to exchange goods without using currency is also interesting.

Before returning to Bangkok I went to intern at the Toronto office for another 3 months. Working and studying abroad for more than 2 years opened my eyes to work and developed my ability to work much better than before. With a determination to be successful in the career of international legal counsel.

Later, when I returned to Thailand and started working again in 2531, I was appointed as a partner of the office when General Chatchai Choonhavan was elected. and during that time the Thai economy which has been affected by economic restructuring since The government of General Prem Tinsulanonda has led to the expansion of foreign trade and investment. With the intention of Thailand being the 5th tiger during that period.

Our office and myself are involved in trade and investment law. whether from foreign investors coming to invest in Thailand or Thai investors who have a joint venture with a foreign country, making a Joint Venture Agreement, requesting permission to operate a business of a foreign company, applying for a BOI, which at that time was an international legal consulting business Therefore it is very prosperous. During that time, I almost I almost enter into Joint Venture contracts with 3-4 companies per week. Experience in making trade and investment contracts is considered an important basis for later working in the capital market.

In addition to this I also had the opportunity to be involved in the legal aspect of mergers and acquisitions of finance companies for investors under the April 14 Project, one of which was Universe Trust Company Limited at Bangkok Bank Group, Land and Houses Group, and Ekthamrong Group. Participate in investing and buy shares and later changed its name to Nithipat Finance Co., Ltd. and was brought into the Stock Exchange of Thailand shortly before the 2540 economic crisis.

In becoming a legal advisor in this matter, I gained experience and got to know and working with Mr. Narong Patmasevi, Mr. Anant Asavabhokhin, Mr. Chatsiri Sophonpanich, Dr. Wichit Suraphongchai and Mr. Phakhawat Kovitwatthanaphong. which can be considered Being a legal advisor and working with Mr. Narong Patmasevi and the management team Nithipat Finance and Securities Company has made me more involved with the money and capital markets.

Including becoming a director when Nithipat Finance Company Limited is listed on the stock exchange. Serving as a director in such a company gives me the opportunity to learn and experience with directors and executives who have those abilities. And it is a pity that when the 40 crisis occurred, Nithipat Finance Company disappeared and became the current Maybank Kim Eng Securities Company.

Another important thing is the important work experience during that time. I became a legal advisor for Thai Airways Company Limited in negotiating the purchase of airplanes from the Boeing and Air Bus groups, as well as entering into aircraft leasing agreements (Operating Lease). I worked with lawyers at Baker & Mack. Kenzie in Hong Kong, which was a job that gave her another type of international contracting experience. to learn new things From the legal work that was previously done

He also served as legal advisor from the listing of Thai Airways International Company Limited on the Stock Exchange of Thailand in 2535. Thai Airways International Public Company Limited has remained an important client of Baker & McKenzie from the past to the present. Even during the time of filing for business rehabilitation, which was the last work that I did before my retirement in June 2564, I can regard Thai Airways International Public Company Limited as the client that I have worked with for the longest time. Working with a state enterprise such as Thai Airways International Public Company Limited allows you to get to know executives, officials, and financial advisors. high ranking government official They have helped me to work and be involved with the government sector and state enterprises in many projects, which is another important learning in my working life.

During the third period, 3-2534, during the Tom Yum Kung crisis. It will be an important period. I am very involved in the capital market, finance and banking business. I will write about it in the next section.