Thailand to repay IMF debt

Thailand to repay IMF debt

BANGKOK (DPA): Thailand will start repayments to the International Monetary Fund (IMF) later this month on its US$17.2 billion bailout extended three years ago, the Bangkok Post said on Monday.

The first payback to the IMF will amount to $201 million said Bank of Thailand Governor Chatumongol Sonakul. He said the repayments would not affect the value of the baht currency because Thailand currently had ample foreign reserves of $32 billion.

In August 1997, Thailand signed a bailout agreement worth $17.2 billion with the IMF after blowing its foreign reserves in an unsuccessful bid to prop up the Thai baht currency that led to a collapse of the domestic financial system.

After borrowing $14.3 billion from the fund and three years of heeding IMF advice on macroeconomic management, monetary policy, restructuring its banks and large corporations, the program officially ended on June 19.