16 March B.E. 2543To Managers All commercial Banks Branches of All Foreign Banks All International Banking Facilities Ref. BOT.EPG.(11) C. 658/2543 Re: Purchasing or holding shares in Iimited companies exceeding the legal limits In order to support the debt restructuring between financial institutions and their debtors with the purpose of solving the problems of non-performing debts owed to financial institutions and to be consistent with the presesnt economic situation, the Bank of Thailand by virtue of Section 12 (5) of the Commercial Banking Act, B.E. 2505 and the additions and amendments, generally extend the permission perild to 31 December B.I. 2544, in line with the contents of the Bank of Thailand's circulationletter Ref. BOT.Ngor. (C) 4588/2541 Re: the Purchasing or Holding Shares in Limited Companies Exceeding the Legal Limits dated 26 Nobember B.E. 2541, as follows: 1. For the possessing of common and preferred shares in limited companies which are the debtors, commercial banks, branhes of foreign banks and IBFs are allowed to hold more than 10 per cent of total shares sold, provided that the shares are possessed by means of debt restructuring in accordance with the regulations by the BAnk of Thailand. 2. Commercial banks, branches of foreign banks and IBFs are permitted to hold common and preferred shares in limited companies in the total amount exceeding 20 per cent of their capital fund provided that the excess number of shares are possessd by menas of debt restructuring in accordance with the regulations by the Bank of Thailand.*This translation is for convenience of those who wre not familiar with Thai language. For offcial purpose, only Thai texts are relevant 3. Commercial banks, branches of foreign banks and IBFs which hold excess shares as aforesaid shall reduce their shareholding so that the amount of common and perferred shares in limited companies, which are their debtors, does not exceed 10 per cent of total shares sold, and total amount of common and perferred shares in limited companies held by commercial banks, branches of foreign banks and IBFs does not exceed 20 per cent of the capital fund. The reduction of the shares shall be undertaken to comply with these limits as soon as they can do without incurring any losses but no later than 31 December 2004. Commercial banks, braches of foreign bank and IBFs are required to submit to the Bank of Thailand Quarterly report concerning the purchasing or holding shares in limited companies as a result of debt restructuring in a accordance with the regulations of the Bank of Thailand. The information shall be presented in the form attached herewith and reported separately from the report on the investment in shares in accordance with Section 12(5) or Table 37 which commercial banks and branches of foreign banks are currently required to submit.Please be in formed and abserve. Regards, (MR. Chatu Mongol Sonakul) Governor Bank of ThailandEnc. Table 37 (Investment in shares in accordance with Section 12(5))Financial Institutions Policy Department Tel 283-5878,283-6877Note [ ] The Bank will hold a meeting to explanin the matter on............. [/ ] No meeting will be arranged.