Thailand to stop using IMF money

Thailand to stop using IMF money

BANGKOK (DPA): Thailand, with its economy heading towards
three to four per cent growth this year and foreign exchange
reserves up to US$32.2 billion, will stop withdrawing money from
the International Monetary Fund (IMF), a news report said Sunday.

The decision is expected to announced in the finance
ministry's eighth letter of intent to the IMF which will be
submitted to the Thai Cabinet for approval on Tuesday, said The
Nation newspaper, citing un-named government sources.

Thailand signed an IMF bailout package in August 1997 for
US$17.2 billion, of which about $14 billion has already been
disbursed.

The programme, which includes IMF directives on macro-economic
management and economic restructuring, was originally scheduled
to be completed in August 2000.

Early withdrawal from the lending portion of the programme has
been made possible by better-than-expected growth this year,
which is expected to reach three-four per cent compared to the
original target of one per cent, said The Nation. Thailand's
economy contracted by 9.4 per cent in 1998.

The kingdom's exports are expected to grow four per cent
growth, compared to the government's original target of 3.5 per
cent. Official foreign reserves at $32.2 billion are deemed
"comfortable."

Although Thailand is expected to stop withdrawing IMF funds it
will continue to follow the Fund's economic restructuring
programme.

The finance ministry's eighth letter of intent to the IMF will
emphasize efforts to speed up debt restructuring within
Thailand's corporate sector to reduce the financial system's 2.7
trillion baht ($67.5 billion) in non-performing loans, said the
news report.