Japan mulls $1b loan to Thailand<\/p>\n
TOKYO (Reuter): Japan is considering extending up to US$1
\nbillion in special loans to Thailand as part of a scheme to help
\nThailand which is facing a sharp fall in its foreign reserves,
\nJiji news agency reported yesterday, quoting unnamed sources.<\/p>\n
U.S. government bonds held by Thailand would be sold to Japan
\nwith the understanding that Thailand would buy them back at a
\nlater date, the news agency said, adding that the special loans
\nwould come from Japan's foreign reserves.<\/p>\n
In addition to the special loan, Japan is considering a plan
\nto extend long-term loans via the Export-Import Bank of Japan in
\ncooperation with the International Monetary Fund (IMF), and to
\nask for cooperation from the Asian Development Bank (ADB), it
\nsaid.<\/p>\n
The special loans would be provided under a bilateral accord
\nstruck by Japan and Thailand in April 1996, which allows for the
\nBank of Japan to lend up to $1 billion in case of emergencies,
\nJiji said.<\/p>\n
Japan signed similar agreements with Australia, Hong Kong,
\nIndonesia, Malaysia, the Philippines and Singapore in April 1996
\non repurchase arrangements for the provision of liquidity on a
\nbilateral basis, Jiji said.<\/p>\n
South Korea joined the repo pact this past January.<\/p>\n
Government officials have said such loans will be used to
\nfight off speculative assaults on the currencies of those
\ncountries with loans collateralized by U.S. Treasuries.<\/p>\n
Japan will provide the loan immediately after Thailand makes
\nan official request, Jiji reported.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/japan-mulls-1b-loan-to-thailand-1447893297",
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