Speaking after the association's annual meeting with the Bank of Thailand, the Bank of Nova Scotia's country manager, Kobsak Duangdee, said every foreign bank was confident about the economy because they had been operating here for a long time. He said that most branches had updated their parent banks on the changed situation.

"We are here for the long term, not the short term," said another foreign banker.

However, some expressed concern over budget delays because of a lack of government administration for many months and over the period of the Council of Democratic Reform under Constitutional Monarchy (CDRM)'s operations.

But these concerns were allayed when the central bank assured the foreign banks that the CDRM would be quick to form a new government and the 2007 budget disbursement would be accomplished by the beginning of next year, said Chaiwat Utaiwan, country manager for AIG Consumer Finance Group.

"We believe the situation is clearer, so things will improve. We are more confident in the economy because the money and capital markets remain on track and oil prices are sustainable," Chaiwat said. "But we are waiting to see who will be in the new government."

If the country runs a budget deficit next year, it will help boost confidence because it will boost consumption and investment, according to Francois Rameau, senior vice president and country manager of Calyon Corporate and Investment Bank.

"But we want to see the new prime minister and his policies," he said.

A representative of GE Money declined to comment about the economic impact of the coup, but said it had been a big surprise to him. He said the peace that has followed was good.

The central bank has informed foreign banks that Thailand's economic fundamentals remain strong because oil prices have declined.

"It's too early to say how the coup has affected the economy. Everyone has a different opinion," he said.

Anoma Srisukkasem

The Nation