New Thai Prime Minister Chuan working out cabinet

New Thai Prime Minister Chuan working out cabinet

BANGKOK (Agencies): Thailand's new government was taking shape
yesterday, one day after Democrat Party leader Chuan Leekpai
became prime minister, coalition sources and political analysts
said.

But less than 24 hours after taking the top job, Chuan said he
needed time to try to solve the country's economic crisis before
calling a new election.

"The new cabinet will be able to be announced this week,"
Chuan told well-wishers at his residence. "We need to form the
government as soon as possible in order to make immediate moves
to solve the (economic) problems."

After days of negotiations, Chuan had wooed 208 politicians
from eight parties into a coalition to replace the government of
Chavalit Yongchaiyudh, who resigned Friday.

Chuan was officially appointed premier for the second time
Sunday evening.

But the new premier said he did not plan to call quick
elections as planned by his predecessor. Chavalit, who stepped
down after being accused of failing to solve Thailand's economic
problems, had promised a poll early next year.

"I would rather not set a fixed time, which would just
pressure the government," Chuan told reporters. "It would take a
couple of months to make the economy more stable and some months
to scrutinize the electoral laws. I want to ensure the new
election will be well prepared ... I don't want the new charter
to be a victim of haste."

The new constitution came into effect on Oct. 11. Three
electoral reform laws, which the charter says must be passed
before the House can be dissolved and new elections called, were
approved by Parliament last week after one day's debate.

Chavalit had made passage of the laws a precondition to his
resignation. Although the laws passed their first reading, the
Democrats abstained from voting. They must still be scrutinized
in the House before final passage.

Chuan and two members of his likely economic team, former
finance minister Tarrin Nimmanahaeminda and former central banker
Supachai Panitchpakdi, said late Sunday that reviving the economy
was a top priority.

They said they wanted to restore confidence in the economy,
especially among foreign investors.

They also said the government planned to quickly revamp the
troubled finance sector and to cooperate with the International
Monetary Fund (IMF) to stabilize the volatile baht.

In August, Thailand received a US$17.2 billion international
bailout package sponsored by the IMF to help revive the economy.

But analysts warned the new government, while widely seen as
honest and competent, would not have a miracle cure to the major
economic problems, which have been bubbling under the surface for
years.

An initial euphoric reaction to the Democrat-led government in
financial markets eased slightly by the end of the day as
investors waited to see the new administration's policies.

Although off the day's highs, the baht was still firm against
the U.S. dollar. By 1000 GMT on Monday it was quoted at
37.22/37.45 bid/ask in onshore dealings, compared with
38.30/38.60 Friday.

The stock market, which initially registered its approval of
the new government by opening nearly 3 percent higher, shed all
gains and closed down 1.03 percent at 487.94. Dealers said
investors were waiting for a clear indication of what Chuan and
his economic team planned to do.

Krikiat Pipatseritham, rector of Thailand's Chamber of
Commerce University, said the formation of a strong economic team
was key to restoring confidence in Thailand.

Tarrin was expected to be named finance minister and Supachai
deputy prime minister in charge of economic affairs. The
Democrats were also expected to take the commerce and industry
portfolios, political sources said.