IMF to discuss crisis measures for Thailand

IMF to discuss crisis measures for Thailand

TOKYO (AFP): The International Monetary Fund (IMF) will hold a meeting in Tokyo early next week to discuss emergency measures for Thailand, Vice Finance Minister Takeshi Komura said yesterday.

"I hope as many Asian countries as possible will take part in the meeting and we will try to encourage as many as possible to do so," he said.

An informed source told Jiji Press that Australia, China, Hong Kong, Singapore and other Asia-Pacific countries, apart from Japan, would contribute US$1 billion to the international package of $13 billion.

Japan, which is expected to contribute seven billion dollars through the government-owned Export-Import Bank of Japan, has also asked Indonesia and Malaysia to contribute, the source said.

The Tokyo talks on Monday are expected to include the People's Bank of China, the source said.

In Bangkok, an official said Thai Finance Minister Thanong Bidaya would travel to Japan on Sunday for his second visit to Tokyo in a month.

Thanong said in a radio interview he would discuss plans for the IMF bail-out with senior Japanese and IMF officials.

"I hope that the board of the IMF will approve and we can sign agreement later this month," Thanong told Business Radio.

Japan's Finance Minister Hiroshi Mitsuzuka said Wednesday that Japan would be the biggest contributor to the package for Thailand, urging other nations to shell out the "maximum" amount possible.

The seven billion dollar loan from Japan is expected to mature in three to five years and carry an interest rate of four percent.

Meanwhile Nihon Keizai Shimbun reported that the financial assistance package for Thailand was expected to reach US$20 billion, the largest multilateral aid for a currency crisis in the region.

Under the plans, $15 billion will be provided from the public sector, led by the International Monetary Fund (IMF), with support from the private sector seen to be five billion dollars, the said.

The IMF is to provide four-to-five billion dollars via a standby financing facility, with the World Bank and the Asia Development Bank expected to each provide one billion dollars, the business daily said.

The IMF will announce its support Friday next week, and then start negotiations with parties concerned, the daily said.

Japan's Export-Import Bank (JEXIM) is to offer six billion dollars, the largest assistance from a single country, the daily said.

Tokyo is expected to host a meeting of supporting countries within the week in an effort to further boost assistance for the package.

Bilateral financing from Asian countries is expected to be one billion dollars, with additional financing under consideration by IMF and JEXIM less than one billion dollars, the daily said.