Virabongsa orders establishment of loss-tackling committee

business June 28, 2012 00:00

By The Nation

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Bank of Thailand's newly-appointed chairman Virabongsa Ramangkura started his job with the order to have a special committee set up to clear the central bank's accounting loss.


According to Assistant Governor Chanchai Buratavorn, as secretary of the Bank of Thailand's board of governors, said that Virabongsa is concerned that the loss may erode confidence in the central bank.
Virabongsa today joined the board of governors' meeting for the first time, since his appointment took effect on June 1. 
Chanchai said that the committee would specifically deal with the central bank's accounting loss.
"The chairman expressed his concerns over the accumulated loss. He said that though he would be in office for only a year, (the central bank) should start dealing with the loss... The special committee should be set up to deal with this. Though the issue can't be tackled immediately, there is a move to deal with it," the official said.
Due chiefly to its open market operations, the central bank has issued bonds to absorb excess liquidity. Through the stabilisation mechanism, it has incurred interest burden. For 2010, the bank incurred accounting loss of Bt431 billion. 
With capital inflows and current account surpluses in the past years, as of June 15, Thailand's foreign reserves stood at US$174 billion, against $111 billion at the end of 2008 and $87.6 billion at the end of 2007.