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Thu, September 28, 2006 : Last updated 20:01 pm (Thai local time)



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Home > Business > Finance firms buy into assurances made by BOT governor





Finance firms buy into assurances made by BOT governor

Fifty asset-management companies and securities firms were satisfied with assurances about the country's economic direction and stability made by Bank of Thailand (BOT) Governor MR Pridiyathorn Devakula as head of the economic advisory team for the Council for Democratic Reform (CDR).

Pridiyathorn said yesterday after his meeting with 50 asset-management and securities firms at the central bank that discussions centred on domestic stability and security. Lt-General Winai Phattiyakul, secretary to the CDR, also attended the meeting.

"Ninety per cent of the questions they asked were about the country's domestic stability and security as well as administration," said Pridiyathorn.

Tisco Securities deputy managing director Paiboon Nalinphrangkurn said asset-management companies managed a huge amount of investors' money, and foreign investors had asked them many questions about Thailand's domestic stability and security.

He said foreign investors wanted to know more information before considering investment. Most are concerned about whether foreign direct investment and the mega-projects would be affected by the new political situation and whether any projects would be cancelled.

ING Funds (Thailand) president Maris Tarab said yesterday it was normal for foreign investors to be concerned about the current situation. However, he is not concerned, since he has closely monitored the situation. Society is satisfied that the anti-Thaksin government protests over the past year have disappeared.

He said the sooner Thailand had a new prime minister, the better the economy would be.

"After the meeting, investors said they were satisfied with our explanations and assurances," Pridiyathorn said yesterday.

He said asset-management and securities companies asked him about when the interim constitution would be announced.

Lt-General Winai confirmed yesterday that the interim constitution would be implemented on schedule.

In addition, they asked when an interim prime minister would be appointed, and Pridiyathorn replied it would be before next Wednesday.

Pridiyathorn said all the advisory teams would meet with the CDR again tomorrow.

He assured asset-management firms that the government budget for fiscal 2007 would be disbursed next January 1 as earlier scheduled, while the total budget would be set before October 10 this year.

As head of the economic advisory team, Pridiyathorn also said late on Tuesday that aside from government budget disbursement, mega-projects that were beneficial for the economy was another matter that needed to be considered as soon as possible.

Meanwhile, Finance Ministry permanent secretary Suparut Kawatkul said yesterday he had briefed state-enterprise officials under the ministry about policies relevant to operating their enterprises in line with CDR announcements.

Anoma Srisukkasem

The Nation








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