51.   Those loans are then sold to investors and the proceeds used to finance new home loans.

52.   Others queried whether the FRA board had the legal responsibility to obtain judgements against the non-performing borrowers before selling the loans at auction.

53.   Banyong said the bad asset institution will try to collect as many debts as possible and sell bad loans to interested investors at discounts.

54.   But under the new legislation, the bank will be nationalized temporarily and its bad loans will be sold, Kyodo News agency reported.

55.   Depositors will get their money back and loans are being sold to other institutions.

56.   Earlier this year, Siam Commercial Bank PCL and Krung Thai Bank PCL said they hoped to sell it loans.

57.   Now that financial institutions are overloaded with mortgages and commercial loans, they are ready to clear balance sheets by selling the loans to a special-purpose vehicle.

58.   The problem is that banks need to sell the loans at a discount.

59.   This will mean that the loans will be sold to the AMC at written down values.

60.   Vicharat expects leasing and housing loans to be sold rapidly due to their good liquidity as well as cash flow.