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.