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15. Outline of the Economic Program for Thailand (As of May 19, 1998)

15. Outline of the EconomicProgram for Thailand (As of May 19, 1998)


I. Outline of IMF Arrangement

Stand-By Arrangement

Scale : 2.9 billion SDR

(Approx. $4.0 billion, equivalent to 505% of quota)

Period : 34 months, beginning in August 1997

Disbursements:

Date of Board Meeting
Amount of Disbursement
1
Aug. 20, 1997
$1.6 billion (1.2 billion SDR)
2
Dec. 8, 1997
$0.8 billion (600 million SDR)
3
Mar. 4, 1998
$0.3 billion (200 million SDR)

II. Macroeconomic Goals

Real GDP Growth : 1997 -0.4%, 1998 -3%-->3.5%

CPI Inflation : 1997 7.7%, 1998 10.6%

Fiscal balance (percent of GDP) : 1997 -1.0%, 1998 -1.6%

External Current account balance (percent of GDP) : 1997 -2.2%,1998 3.9%


III. Specific Policies

Fiscal Policy

  • Raising spending on the social safety net

Monetary and Exchange Rate Policies

  • Flexible use of interest rate policy to stabilize the exchangerate
  • Maintenance of tight manetary stance

Financial Sector Reform

  • Intensified efforts to recapitalize the banking system includingthrough foreign investment
  • Revision of laws concerning the central bank and banking regulation,and strengthening of relevant organizations

Structural Reform

  • Acceleration of privatization
  • Improvement of legal framework such as bankruptcy laws
  • Expansion of the social safety net

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