Thailand to get $5b credit<\/p>\n
TOKYO (AFP): Major commercial banks from the United States,
\nEurope and Asia decided yesterday to provide a line of credit
\nworth up to US$5 billion to help defuse Thailand's currency
\ncrisis, a Japanese report said.<\/p>\n
The banks will negotiate terms of the line of credit with the
\nThai government as part of a multilateral support program and
\nform a syndicate of bank members, the Nihon Keizai Shimbun said.<\/p>\n
The leading economic daily said in its evening edition that
\nJapanese banks might provide half of the line of credit as they
\nare Thailand's biggest creditors.<\/p>\n
The move was to follow public aid plans likely to be announced
\nlater in the day by the International Monetary Fund (IMF) and the
\nExport-Import Bank of Japan (Ex-Im Bank).<\/p>\n
On Sunday, Nihon Keizai reported the IMF and the Ex-Im Bank
\nwere to jointly provide about eight billion dollars in emergency
\nloans to Thailand.<\/p>\n
The IMF is expected to provide some four billion dollars in
\nshort-term loans and the Ex-Im Bank up to four billion dollars.<\/p>\n
The private sector aims to compliment the IMF and Ex-Im Bank
\nprograms which will cover a shortfall in Thailand's foreign
\ncurrency reserves to help reconstruct its economy, the newspaper
\nsaid.<\/p>\n
But it is still uncertain if the private sector loans would be
\nextended, Nihon Keizai said.<\/p>\n
It is, the line of credit will probably be provided for a
\nperiod of two-to-three years, the newspaper said.<\/p>\n
Syndicate members are expected to include two Japanese banks,
\nSakura Bank Ltd. and Bank of Tokyo-Mitsubishi Ltd., and J.P.
\nMorgan Inc. of the United States, it added.<\/p>\n
Officials from Sakura Bank and Tokyo-Mitsubishi declined to
\nmake any immediate comment on the report.<\/p>",
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