ID :
121367
Tue, 05/11/2010 - 09:59
Auther :
Shortlink :
http://m.oananews.org//node/121367
The shortlink copeid
Greek debt crisis to impact exports, says BoT
BANGKOK, May 11 (TNA) – Bank of Thailand (BoT) Deputy Governor Bandid Nijathaworn on Monday allowed that the public debt crisis facing Greece would have an impact on Thailand’s exports to a certain extent.
He said the decision by the European Union and the International Monetary Fund to come up with measures to help debt-ridden Greece helped boost investor confidence that the country would manage to cope with its debt crisis.
Asian currencies including the Thai baht strengthened in response to the joint EU and IMF move.
However, he conceded the Greece debt crisis might discourage some countries from adopting a fiscal policy to stimulate the economy because they feared an increase in public debt, so it is necessary for them to continue using an eased monetary policy for a while.
“The baht has appreciated in the same direction with other currencies in the region in response to good news about the debt rescue plan. The liquidity in the system is considered normal now,” he said
Mr Bandid said the Monetary Policy Committee will take into account at its meeting on June 2 Thailand's fundamental economic factors including how much state and private spending could contribute to economic recovery.
In addition, it will consider how adversely global economic recovery would be affected by the Greece debt crisis.
Initially, he admitted the crisis would impact Thailand’s exports to a certain extent, but he did not specify how much.
As many European countries are experiencing the public debt woes, Mr Bandid added it is more difficult to count on fiscal policy to stimulate the economy because it could fuel debt burdens.
Because of this, it is likely many countries around the world would apply an eased monetary policy to boost the economy instead, he said. (TNA)
He said the decision by the European Union and the International Monetary Fund to come up with measures to help debt-ridden Greece helped boost investor confidence that the country would manage to cope with its debt crisis.
Asian currencies including the Thai baht strengthened in response to the joint EU and IMF move.
However, he conceded the Greece debt crisis might discourage some countries from adopting a fiscal policy to stimulate the economy because they feared an increase in public debt, so it is necessary for them to continue using an eased monetary policy for a while.
“The baht has appreciated in the same direction with other currencies in the region in response to good news about the debt rescue plan. The liquidity in the system is considered normal now,” he said
Mr Bandid said the Monetary Policy Committee will take into account at its meeting on June 2 Thailand's fundamental economic factors including how much state and private spending could contribute to economic recovery.
In addition, it will consider how adversely global economic recovery would be affected by the Greece debt crisis.
Initially, he admitted the crisis would impact Thailand’s exports to a certain extent, but he did not specify how much.
As many European countries are experiencing the public debt woes, Mr Bandid added it is more difficult to count on fiscal policy to stimulate the economy because it could fuel debt burdens.
Because of this, it is likely many countries around the world would apply an eased monetary policy to boost the economy instead, he said. (TNA)
