A policy to strict on cash reserve balance in compliance with the International Accounting Standard (IAS 39) has forced Krungthai Credit Card Plc (KTC) to encounter a loss of 395 million baht in 2009, President Niwat Jittalan told reporters.

He said the credit card company is more rigid with its doubtful debts policy by allowing shorter period of credit card miss payment to 90 days from a regular 180 days.

The process begin in the fourth quarter of the year and caused it to immediately acknowledged a loss of 1.26 billion baht for the quarter, effectively suppressed the company’s profit into a negative territory of net 395 million baht loss.

“We are, however, upbeat for 2010. There should be nothing terrible happening than in over the past recent years,” Mr. Niwat said—referring to the global financial crisis.

He said the company also has policy to increase a cash reserve balance by 200-300 million baht in the years to come.

KTC hopes to add 200,000 new credit card bearers for 2010 to its current cardholders base of 1.6 millions.