Arkhom pledges stability after poll
Authorities to protect economy, finances
The government is ready to take action, even in a caretaker position before the next administration takes power, should global volatility affect the country’s economy or financial system, Finance Minister Arkhom Termpittayapaisith told reporters.
His remark was in response to the global stock market rout last week following the collapse of three US banks, which sent shockwaves through the financial industry, with stocks plunging and public confidence shaken.
US authorities introduced measures to solve the problem, resulting in a rebound in some markets.
Mr Arkhom said it would take time before the markets return to normal.
Earlier he said the ministry was monitoring the collapse of Silicon Valley Bank (SVB) to check on any impact to Thailand.
Mr Arkhom said he believes the meltdown will not affect Thailand because local banks did not have any transactions with SVB.
The Thai general election is likely to take place in May.
According to AFP, Asian markets bounced back yesterday as concerns about a contagion from the collapse of two US regional lenders eased, while investors turned their attention to next week’s Federal Reserve interest rate decision.
Banks rallied in early exchanges after taking a battering the previous two days in reaction to the demise of SVB and Signature Bank at the weekend — the biggest casualties since the 2008-09 global financial crisis.
Investor worries were soothed by the swift response from US authorities, pledging all depositors would be made whole, while other lenders would be supported.
The run on deposits at SVB and Signature — as well as crypto bank Silvergate Capital, which went under earlier in March — led ratings agency Moody’s to cut its outlook for the US banking system to negative from stable.
In a separate matter, Mr Arkhom yesterday presided over the signing of a collaboration between state-owned Thai Credit Guarantee Corporation (TCG) and 18 financial institutions for TCG’s Portfolio Guarantee Scheme 10, which aims to help small and mediumsized enterprises access loan guarantees with lower costs.
The cabinet approved the scheme late last month for guarantees worth 50 billion baht.
Mr Arkhom said the scheme would generate economic value of 200 billion baht and allow the retention of more than 700,000 jobs.
Under the Portfolio Guarantee Scheme 10, the government provides financial support to TCG, enabling the agency to charge customers a lower fee.