Thailand seeks extra $3bn to stave off crisis
Thursday 21 August 1997
Officials from the Bank declined to comment on statements from the Thai government that it would be calling for the extra loan. The extra assistance, which would be used to bolster foreign reserves and help cover a balance of payments shortfall, would bring in funds from the US Federal Reserve and European central banks.
That would widen the geographic spread of assistance for Thailand, which has so far included contributions from countries in the Asia-Pacific region as well as the International Monetary Fund, World Bank and Asian Development Bank. The IMF was meeting yesterday in Washington to approve its own $4bn contribution.
The package is designed to bail out Thailand, which was forced to devalue its currency after persistent attacks by speculators in the foreign exchange markets.
Several South-east Asian currencies have fallen victim to speculation in recent months, with the Hong Kong dollar's peg to the US dollar coming under fire most recently.
The BIS is a global centre for co-operation among central bankers and provides a wide array of financial services to these banks. This includes short-term bridge financing in the event that a country is facing a liquidity crunch.
In 1995 the BIS arranged for a $10bn short-term facility for Mexico as part of an international package that included $20bn from the United States and $17.8bn from the IMF.
Bankers said Thailand's recourse to the BIS was an indication it may have difficulty keeping its international reserves above a $23bn level prescribed by the IMF. Those worries kept downward pressure on the baht, which has lost more than 20 per cent of its value since it was floated on 2 July. Thailand has foreign debt of nearly $89bn, around half of which is held by Japanese banks.
elephant appealThe first 23 lots in our charity auction have now gone. But there are 22 more still up for grabs
newsFormer soldier taped 33 of the animals to the floor and then stamped on them one by one
Michelle Nijhuis' daughter insists (s)he is, and she learnt a valuable lesson on gender in books
Sun will 'flip upside down' within weeks, says Nasa
Lee Rigby murder: How killers Michael Adebolajo and Michael Adebowale became ultra-violent radicals
Cycle death inquest: Boyfriend hugs driver of 32 tonne tipper truck that killed his girlfriend
Paul Walker death caused by speed alone
Apollo Theatre collapse: Scores injured after ceiling collapses in London's West End
- 1 America's 'virgin births'? One in 200 mothers 'became pregnant without having sex'
- 2 North Koreans are gasping for the truth: Let's give it to them
- 3 Sun will 'flip upside down' within weeks, says Nasa
- 4 Christmas comes early: Justin Bieber is 'retiring from music'
- 5 Cycle death inquest: Boyfriend hugs driver of 32 tonne tipper truck that killed his girlfriend
- < Previous
- Next >
iJobs Money & Business
£55000 - £120000 per annum: Pro-Recruitment Group: The Financial Services Tran...
£600 - £700 per day: Harrington Starr: Client based in West London is looking ...
£80000 - £120000 per annum + Benefits: Pro-Recruitment Group: Risk - Delivery/...
£Negotiable: Citifocus: This is a new role carrying responsibility for a numbe...