RI, Thailand seen to recover by 2000

RI, Thailand seen to recover by 2000

KUALA LUMPUR (Reuters): International Monetary Fund managing
director Michel Camdessus said yesterday that he believed
Indonesia and Thailand would recover from an economic crisis by
2000.

"I am pretty certain that within two years, two and a half
years, you will see high growth" in Indonesia and Thailand,
Camdessus told a news conference in the Malaysian capital.

Both Indonesia and Thailand have received emergency financial
aid under IMF-led reform packages but remain in the grips of a
six-month old economic crisis.

On Thursday, Camdessus and President Soeharto agreed fresh
economic reforms for Indonesia which ranged from the elimination
of monopolies over major commodities to the cancellation of a big
power project.

Camdessus said he felt Soeharto deserved international backing
for adopting the new program. "I believe he deserves the support
of the international community," he said.

U.S. President Bill Clinton called Soeharto on Thursday to
express support, but financial markets reacted cautiously to
Indonesia's program.

The IMF chief, on a tour of the region, said confidence in
South Korea's economy had gradually "improved", and that it was
crucial that South Korea's IMF-led adjustment program be
implemented with social stability.

Camdessus said Thailand had not asked to renegotiate its IMF
program or requested additional emergency assistance.

He expressed confidence that Bangkok would reassess its entire
economic situation and adapt to changing circumstances if
necessary.

"Thailand will re-analyze the whole situation and if necessary
will adapt to changing circumstances," he said.

The IMF managing director said he considered China to be a
stable part of the region.

Malaysia has taken important economic steps, especially in the
area of fiscal policy, and did not need an IMF rescue package, he
said.

"Malaysia does not need a Fund program," he said.

But he said Malaysia would have to strengthen its monetary
policies, and the IMF would help the nation in its financial
reform and discuss economic strategy with Malaysia in March, he
said.