Japanese authorities July 29 welcomed Thailand's decision to begin talks with the International Monetary Fund for help in restoring stability to its weakened baht, adding that Tokyo would seriously consider any Thai request for aid from Japan.
Speaking at a news conference, Finance Minister Hiroshi Mitsuzuka said the initiation of talks on an economic adjustment program with the IMF was a first step in resurrecting the Thai economy. "I hope an agreement can be reached (with the IMF) so that trust in the (Thai) financial market can be restored and the Thai economy can soon walk the path toward sustainable growth," he said.
The finance chief, while noting that Bangkok's first priority is on the discussions with the IMF, added that Japan would "seriously consider" the idea of offering financial assistance to aid the baht if the Thai government makes such a request.
Early this month, Thai authorities decided to place its battered currency under a managed float system in response to speculative attacks, a move that triggered a wave of foreign exchange instability throughout Southeast Asia. A Thai delegation led by Finance Minister Thanong Bidaya visited Tokyo two weeks ago to discuss the situation with government officials and private-sector representatives.
At the time, Tokyo promised to cooperate with Thai authorities in stabilizing the baht on the exchange markets, including possible intervention. But at the time, the Thai side made no request for financial assistance from Japan, and also said they were not seeking IMF assistance, Finance Ministry officials said.