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Strategies & Market Trends : Graham and Doddsville -- Value Investing In The New Era -- Ignore unavailable to you. Want to Upgrade?

To: porcupine --''''> who wrote (1096)	1/2/1999 11:34:00 PM
From: porcupine --''''>	Respond to of 1722

Thai Economy Forecasts 1999 Growth December 28, 1998 BANGKOK, Thailand (AP) -- Thailand's recession-stricken economy should grow 0.9 percent next year after shrinking 7.8 percent in 1998, a national planning board reported Monday. Wirat Wattanasiritham, secretary-general of Thailand's National Economic and Social Development Board, told government economic ministers that key determinants of growth in 1999 will be export performance, exchange rates and the state of global markets. Exports are forecast to expand 4.8 percent next year in dollar terms, economic board head Wirat said, after a contraction this year that the central bank has estimated at 6.7 percent to 6.9 percent. Thailand grew accustomed to annual growth rates in excess of 7 percent during a boom in the early 1990s. But the growth bubble burst last year after a decision in mid-1997 to devalue the nation's currency triggered a region-wide meltdown. It also forced companies with large exposure to foreign currency-based financing to go broke -- leaving behind a massive load of bad debts. Thailand's central bank announced Monday that non-performing loans in the domestic banking system accounted for nearly half of the country's outstanding loans as of Oct. 31. The soured loans -- defined as those where no payment has been received for at least three months -- account for 40.5 percent of bank loans and fully 63.6 percent of the total at non-bank finance companies. Thai authorities have closed half of the finance companies and taken over or consolidated a third of the banks. But many cash-strapped firms are still unable to pay loan installments. Total banking sector bad debt was 2.25 trillion baht ($62.5 billion) and 300.5 billion baht ($8.3 billion) at the finance companies, the Bank of Thailand said. Bad debt at 24 still-operating finance companies accounted for 55.6 percent of total loans. Non-performing loans at 12 finance companies closed earlier this year accounted for 77.9 percent of total loans. Since taking power a year ago, Prime Minister Chuan Leekpai's adherence to the conditions of a $17.2 billion bailout arranged by the International Monetary Fund has restored some confidence in Thailand's hard-hit economy. The baht has regained about half the value it had lost at its nadir last year and the stock market has staged a mild recovery.