Imf Begins Thai Growth Review

A team from the International Monetary Fund (IMF) yesterday began reviewing Thailand's growth projections and economic situation ahead of a possible renegotiation of its bailout package to the crisis-hit nation.

A group of 10 representatives from the IMF, led by Anoop Singh, began its two weeks in Thailand with meetings with officials from the Bank of Thailand, the ministry of finance and the government think tank, the National Economic and Social Development Board (NESDB).

They were due to discuss growth and inflation projections, external sector developments and fiscal issues, the Bank of Thailand said. Analysts speculate that cash-strapped Thailand will take the opportunity to ask the IMF for additional loans to top up last year's bailout package. The IMF arranged for Thailand a $17.2 billion international bailout package and set a series of strict austerity measures as conditions for the loan.

 

Finance minister Tarrin Nimmanahaeminda yesterday repeated comments made last week that the government hoped a new letter of intent with revised terms could be announced as soon as the third week of February. He also said the government was dedicated to reforming the economy. The IMF team was due to meet BOT governor Chaiyawat Wibulswasdi today before holding further meetings.

It would also meet the president of the Foreign Bankers' Association and some company officials later in the week.

Analysts said an easing of the IMF's tight fiscal demands could also be on the agenda for the talks, scheduled for February 2-14.

Tarrin, who recently went to Washington to lobby the IMF, has hinted that the world body is amenable to a package revision, requested by Thailand on the grounds that its economy has fallen into much worse shape than foreseen by the IMF last year.