Top officials of three Japanese banks with close ties to Thailand on Oct. 10 urged the Thai government to continue trying to implement economic measures that would restore global trust in its battered economy.The calls came during the second day of separate meetings between visiting Thai Prime Minister Chavalit Yongchaiyudh and Japanese firms operating in the Southeast Asian nation. Executives from Sakura Bank, the Bank of Tokyo-Mitsubishi and Sumitomo Bank told reporters individually that Thai officials broadly outlined the package of measures, to be announced Oct. 15, that are aimed at resurrecting its financial sector.In response, the bankers pointed out that it is vital for Thailand not to stray from the economic support policies worked out with the International Monetary Fund, which led to the formation of a $17.2 billion international assistance package in August.Chavalit and his accompanying ministers urged banks to maintain their current presence, indicating that Bangkok does not want the Japanese financial institutions to reduce their loans to Thailand.Later in the day, Thai Finance Minister Thanong Bidaya, who accompanied Chavalit on the trip to Japan, told a news conference that the Thai government will offer legislated guarantees to foreign creditors of the nation's troubled financial institutions."In all respects, foreign creditors will be treated on an international basis and will be treated with strict obedience to the agreements with the IMF (International Monetary Fund)," Thanong told the Japan National Press Club.According to Thanong, Thailand plans to institute a law to guarantee all loans and interests of depositors and creditors of existing institutions, following a Cabinet decision earlier to the same effect.
