Canada takes RI place in Thai IMF bailout

Canada takes RI place in Thai IMF bailout

BANGKOK (Dow Jones): Canada formally took Indonesia's place
yesterday as a lender in a US$17.2 billion credit line arranged
for Thailand by the International Monetary Fund.

Indonesia found itself unable to meet its commitment to a $500
million contribution when its own economy collapsed after the
Thai program was arranged in August last year.

Canadian Ambassador Bernard Giroux and Bank of Thailand Chatu
Mongol Sonakul signed an agreement Monday at a ceremony presided
over by Thai Finance Minister Tarrin Nimmanhaeminda.

The Thai credit line consists of $4 billion to come directly
from the IMF, $10.5 billion from bilateral pledges, and $2.7
billion from the World Bank and the Asian Development Bank.

Tarrin said that out of the $500 million Canadian
contribution, $360 million can be drawn immediately.

The remainder of the contribution will be subject to Thai
government and IMF approval of an ongoing quarterly review of the
program.

A letter of intent from the Thai government setting out
economic targets and policies tied to the upcoming fifth quarter
of the program will be considered by the IMF board in Washington
on Sept. 11. An IMF team in Bangkok is to wind up talks with the
Thai government on fifth quarter by Sunday, and the letter of
intent may be presented to the Thai cabinet for approval next
week.