Chuan Named New Thai Pm

Chuan Leekpai, leader of the main opposition Democrat Party and the man seen most likely to be able to solve Thailands financial problems, was named Prime Minister on Sunday.

He replaces Chavalit Yongchaiyudh who was widely blamed for the countrys worst economic turmoil in decades. Chuans appointment was approved by King Bhumibol Adulyadej and formally presented to him in front of hundreds of cheering supporters at party headquarters by a senior parliamentary official.

Chuan was previously prime minister from 1992-1995. He will lead a new coalition government comprising at least 208 members of parliament from a total of eight political parties. His own core Democrat Party holds 123 seats in parliament.

Markets and investors had been anxiously awaiting Chuans arrival at the helm of a country which is facing its worst economic downturn in decades and has taken a $17.2 billion bailout package sponsored by the International Monetary Fund.

Thailand has major problems in its finance and property sectors and its currency, the baht, has plunged to record lows since it was floated in July.

The Democrats accepted the task of forming the new government with some caution. We really did not want it (get the government) this way and would have preferred an election with a landslide victory. But it is a period of crisis and we have to do something for the country, said Arthit Urairat, a senior Democrat MP.

Other party leaders said a new cabinet could be formed in a few days, with the Democrats holding most key economic portfolios.

The finance ministers post would likely go to banker, former finance minister and MP Tarrin Nimmanahaeminda while the deputy premiership with supervision of macroeconomic affairs would go to former central banker and MP Supachai Panitchpakdi.

Chuan clinched the premiership after a group of former government lawmakers broke ranks with their own party leader to support him.

Fourteen defectors from the Prachakorn Thai Party (PTP), who had earlier declared support for Chatichai, defected to Chuan on Saturday giving him a virtual majority.