Financial Package: Sugisaki Welcomes Thailand's Resolve to Pursue Economic Restructuring Policies

• Pages: 270

Page 270

"The actions announced by Finance Minister Tarrin Nimmanhaeminda and Central Bank Governor Chatu Mongol aim at decisively restructuring Thailand's financial system and facilitating economic recovery. The announcement recognizes that the recession and the regional economic environment warrant forceful and comprehensive measures.

"The authorities are seeking to address all the main areas of weaknesses in the financial system. Today's announcement was preceded by forceful action involving intervention by the Bank of Thailand in additional banks and finance companies. Resolution strategies for these as well as previously intervened institutions have been announced, involving the exit, merger, or sale of the unviable institutions. The hallmark of the announcement is the availability of public funds to catalyze the entry of new private capital, as well as strong incentives for banks to restructure corporate debt. A number of burden-sharing safeguards have been developed, including the write-down of the value of the assets of existing shareholders. Other...