Asian banks to sign agreement

Asian banks to sign agreement

BANGKOK (Reuter): Officials at several Asian central banks from Asia will sign a memorandum of understanding in late November aimed at helping each other ease financial problems, Thai Finance Minister Surakiat Sathienthai said.

Surakiat told a seminar the agreement on financial assistance would be on a bilateral basis and be signed by Indonesia, Hong Kong, Malaysia and Thailand.

"The amount of the assistance to be provided would depend on the financial strength of the lending country," he said. "Several other countries have also expressed interest to join this financial cooperation scheme in the future."

Surakiat also said the Thai government planned to mobilize more funds through the issue of bonds to boost the local capital market.

"The plan is necessary if Thailand wants to become the financial hub in this region," he said.

The central bank governor has said in the past that more bond issues would be made if and when there is a need.

Bonds issued by the government amounted to 44.873 billion baht by the end of 1995 fiscal year, which ended on Sept. 30, he said.

The government would join with state enterprises in the scheme to issue more bonds.

The plans to issue more bonds by the government is necessary to mobilize funds for major development projects, Surakiat added.