Thai Policy Package Wins Support of IMF and International Community

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Page 259

On August 5, IMF Managing Director Michel Camdessus "greatly welcomed" the "important announcement by Thai authorities aimed at overcoming present economic problems in Thailand through the introduction of a comprehensive package of policies." The policy package, Camdessus said, was "rightly focused on immediate and sweeping measures aimed at assuring the solvency and strength of Thailand's financial system and on supporting fiscal measures and other welcome initiatives aimed at re-establishing a strong macroeconomic basis for stability and growth of the economy." He especially welcomed the Thai government's adoption of a comprehensive restructuring of troubled financial institutions. This was essential, Camdessus said,"to lay the basis for the re-establishment of a sound financial sector and to set the stage for effective recovery."

Camdessus noted that an IMF team was in Bangkok working with the authorities to further develop the package into a multiyear adjustment program that could be supported by IMF resources. He said he was in close touch with governments in the region and multilateral institutions to put together a supplementary financing package in support of the policy efforts of the Thai authorities.

"I am also confident that today's strong actions by Thailand and the financial support that could be extended to it will decisively contribute to stability in financial markets in Asia," Camdessus concluded.

Subsequently, on August 7, the IMF announced that it had convened a meeting of interested countries and multilateral institutions in Tokyo on August 11 to discuss their possible participation in a financing package for Thailand to support the stabilization program being discussed with the IMF...