Thai finance chief vows to curb economic slide<\/p>\n
BANGKOK (Reuters): New Finance Minister Kosit Panpiemras said
\nyesterday he would try to stop Thailand's economic crisis from
\nworsening by maintaining strict fiscal discipline in the short
\ntime he expects to be in office.<\/p>\n
He also pledged to adhere to the tough austerity measures
\nrequired by the International Monetary Fund (IMF) in exchange for
\na US$17.2-billion bailout package that the world body arranged
\nfor Thailand to beat its worst economic crisis in decades.<\/p>\n
The new minister, who replaced Thanong Bidaya in a cabinet
\nreshuffle last Friday, said he would carefully review projects
\nthat require high spending and avoid some of them if necessary to
\nmaintain austerity. He gave no details.<\/p>\n
Kosit is seen by analysts as a stopgap finance minister before
\nthe country goes to the polls in a few months. Elections are
\nexpected to be called soon after Parliament passes new electoral
\nlaws required by the constitution adopted on Oct. 11.<\/p>\n
\"I laid out my policies to my officials today and told them to
\nbe united and coordinated in their work and to adhere 100 percent
\nto fiscal discipline,\" he told reporters after meeting ministry
\nstaff on his first day at work.<\/p>\n
\"I also told them to try to uphold the economy so that it does
\nnot worsen further, and prepare over the next three months to
\nhand over the job to any new government that comes in,\" he said.<\/p>\n
Reaction<\/p>\n
The Thai stock market and the baht gave muted reaction to
\nKosit's statements. The stock index at 0438 GMT was down 1.98
\npoints at 492.02, with sentiment dampened by a tumble in Hong
\nKong's Hang Seng index.<\/p>\n
The baht held about steady at 38.45\/38.55 per dollar as
\nexporters moved into the market to buy baht.<\/p>\n
Prime Minister Chavalit Yongchaiyudh has promised to get
\nparliament to pass three electoral laws as required under
\nThailand's new constitution to enable fresh elections to be held
\nearly next year.<\/p>\n
The new laws would be perused by the cabinet before being sent
\nto a special sitting of parliament on Nov. 6 to Nov. 7 for debate
\nand approval.<\/p>\n
\"I have about two or three months only to work and I believe I
\ncan stay in my post for that time. Before I came to take the job
\nI talked to two deputy prime ministers, Virabongsa Ramangkura and
\nKorn Dabbaransi, and both assured me there would be no political
\ninterference in my job,\" Kosit said.<\/p>\n
Interference<\/p>\n
Kosit is the third unelected finance minister in Chavalit's
\n11-month-old, six-party ruling coalition government. The others
\nquit, citing political interference in their jobs.<\/p>\n
Kosit said that if the weak baht remained stable, as it has
\nfor the past two or three weeks, it would be good for his job and
\nthe national economy.<\/p>\n
His other priorities were to look into hefty spending cuts
\npromised by the government in the 1997\/98 (October-September)
\nbudget and to appoint staff to run the Financial Restructuring
\nAgency (FRA) that was set up by special decree last week to
\nmanage the good assets of 58 suspended finance firms.<\/p>\n
The government has agreed to cut 159 billion baht (US$4.2
\nbillion) from the budget and raise taxes on imported goods to
\nmeet the austerity measures required by the IMF to put the
\neconomy back on track.<\/p>\n
\"I will proceed on two immediate tasks this week. The first
\none is about the budget and the FRA. On the FRA, I need to seek
\npeople to work in it, while on the budget I will call a meeting
\nthis Thursday,\" Kosit said.<\/p>",
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