Tarrin leaves for talks with U.S., IMF

Tarrin leaves for talks with U.S., IMF

BANGKOK (AFP): Thai Finance Minister Tarrin Nimmanahaeminda
yesterday left for crucial talks with U.S. and IMF finance chiefs
in Washington in the hope of improving investor confidence in
cash-strapped Thailand.

Analysts predict Tarrin will argue for a fresh injection of
capital in the wake of dramatic changes in the economic
environment since Bangkok's international rescue package was
approved last August.

They said Thailand needed either a relaxation of the strict
austerity measures attached to the International Monetary Fund
(IMF)-led US$17.2 billion package or an extra credit facility.

The minister will seek "additional funding of $12 billion to
support the country's foreign reserves" depleted by the abortive
defense of the baht last year, the Bangkok Post said.

The paper provided no source for its assertion, but analysts
here have long said the IMF bailout was inadequate.

But Tarrin was tight-lipped at the airport before his
departure early Monday, saying only that he hoped the meetings
would help to restore confidence in the economy.

"We will be discussing the rescue plan which we hope will
restore investors' confidence," he told reporters.
Last week, IMF chief Michel Camdessus said Thailand had neither
requested a renegotiation of its IMF package, nor additional
funds ahead of Tarrin's visit.

The minister will meet top IMF officials, as well as
representatives of the World Bank and the International Finance
Corporation, the World Bank's private investment arm.

He will also meet U.S. Secretary of State Madeleine Albright
and National Security Council officials, as well as Treasury
Secretary Robert Rubin whom he will reportedly ask for help in
rolling over Thailand's debts with U.S. banks.

The Thai stock market rallied almost 10 percent Monday,
closing 37.7 points higher at 420.72, partly in anticipation of
Tarrin's three-day visit.