New rules being framed for state enterprises' dealings with KTB
The Comptroller-General's Department is reported to be working on new rules for state authorities to continue doing financial transactions with Krungthai Bank (KTB) and without breaching related rules despite the bank losing its state enterprise status, according to State Enterprise Policy Office director-general Prapas Kong-Ied.
He told Krungthep Turakij newspaper that existing state rules require state agencies to deposit or engage in financial transactions only with state-owned banks.
According to KTB's filing to the Stock Exchange of Thailand on November 6, the Financial Institutions Development Fund informed KTB on November 3 that the Council of State is of the opinion that KTB is neither a private nor a public company classified as “State Enterprise” under subsection (2) and (3) of Section 4 of the Budget Procedures Act, 2018.
The fund has consulted the Council of State about the state enterprise status of its own and that of KTB.
KTB added that the alteration of the bank's status according to the legal opinion has a material effect on the bank's business operations and its compliance with the laws and regulations related to state enterprises. As a result, the bank is considering the impacts in various areas.
