News Brief: IMF Completes Thailand Review, Approves US$135 million Tranche under Stand-by Credit
September 11, 1998
IMF Board Completes Thailand Review, Approves US$135 million
Tranche under Stand-by Credit
Michel Camdessus, the Managing Director of the International Monetary Fund (IMF), said: "I am pleased to announce that the IMF’s Executive Board today approved the completion of the fourth review of Thailand’s stand-by credit with the IMF. As a result, bilateral and multilateral contributors will disburse an additional US$500 million under Thailand’s financing package. Of this, the IMF will contribute SDR 100 million (about US$135 million).
"In approving completion of the fourth review, Executive Directors commended the Thai authorities on further consolidating their stabilization gains. Thus, broad exchange rate stability has been maintained, net foreign exchange reserves have increased further, and inflation has fallen, which have allowed significant reductions in interest rates. These achievements have been secured despite a more difficult regional and international economic environment, making Thailand’s record all the more impressive.
"Directors believed that the program has been well adapted to resist contagion from a more difficult international environment, and to lay the foundation for economic recovery. In particular, Directors strongly supported the decisive and comprehensive actions that have been taken to advance financial and corporate restructuring, and the flexible adaptation of fiscal policies (including through increased social safety net expenditures) to cushion the recession."