Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Asia Forum -- Ignore unavailable to you. Want to Upgrade?

To: peter michaelson who wrote (1751)	1/30/1998 9:38:00 AM
From: Mohan Marette	Respond to of 9980

Thailand,on the road to recovery,already????? anyone know of a good way to go long Thailand, like a WEBS or anything? I ask every week hoping and....hoping.....and....hoping. Peter: How about Thai Farmers Bank? ----------------------------------------------------------- Current Account Surplus Expected to Widen This Year Source:Business Day CURRENT account surpluses and other improvements in the economy will ensure that Thailand will not need to follow Indonesia's example in freezing payments of foreign debts, business leaders and government officials said. According to Olarn Chaipravat, Chairman of the Thai Bankers' Association (TBA), current account surpluses are an indication that the country has sufficient earnings in major currencies to repay foreign debts. He predicted that the current account surplus will amount to $6-7 billion this year. "The current account at the end of the second quarter of last year showed a deficit of $3.1 billion but turned into a surplus of $2.4 billion at the end of the fourth quarter," Olarn said. Olarn said total foreign debts at present stood at $90-100 billion. Of the total, $20 billion was borrowings of government sector and about $70-80 billion was private sector's debts. He added that said about half of private sector's debts obtained from Japan were "evergreen debts", meaning that they could be rolled over repeatedly, because they were borrowed by T Thai-Japanese joint ventures. Meanwhile, Deputy Prime Minister Supachai Panitchpakdi said yesterday that he expected the country's current account to move to a surplus in 1998. "In 1998, with no exaggeration at all, I am confident we could reach a current account surplus of $4 billion," he said. "We might not see much growth this year, but we might see some growth in 1999," he said. Supachai also said he was confident about the prospects of economic recovery, and that the country was currently exceeding in many cases International Monetary Fund (IMF) requirements. Arporn Chewakrengkai, economic adviser to Prime Minister Chuan Leekpai, said that the country was in a stronger position because its proportion of foreign debt to reserves was better. "Indonesia's foreign debt is about $140 billion but its foreign reserves are just $20 billion," she said. "Thailand also suffers a debt crisis but our foreign reserves stood at around $27 billion at end December while the total foreign debt was only around $90 billion," she said. Analysts agreed that so far Thailand had moved in the right direction and made impressive progress in solving its problems, although much still needed to be done. Commercial banks have been ordered to recapitalise heavily to strengthen their financial base and to bring in fresh capital. The current account has moved into surplus in recent months, evidence that austerity measures have started to show positive results. Sluggish demand has dented imports and the weaker baht has boosted exports. The Bank of Thailand (BOT) expects the positive trend to continue. But despite signs of improving prospects, some analysts cautioned that the time was not ripe yet for rejoicing. "The baht remains Thailand's most vulnerable point due to the foreign debt overhang. There are big (forex) forward positions that Thailand will have to settle soon," said an economist at a European bank.