BoT governor: Politics undermines economy

BANGKOK, 21 February 2010 (NNT) – Bank of Thailand (BoT) Governor, Dr Tarisa Watanagase, has indicated that political instability and frequent political protests are major factors hindering the economic growth of the country and a slowdown in foreign investment.

Dr Tarisa stated that the private sector had been delaying investment due to the persisting domestic political conflict. She explained that investment by the private sector was not recovering well, despite signs of economic revival.

The governor also cited the frozen projects at Map Ta Phut industrial estate as another worrying issue. She said the private sector wanted to see clear investment regulations which would contribute to speedy investment recovery.

Upon political protests prior to the verdict of the 76-billion-THB asset seizure case of former Prime Minister Thaksin Shinawatra, Dr Tarisa stated that everybody wanted the country to be peaceful to enable the economy to move forwards. She also confirmed that all commercial banks have prepared measures to protect their liquidity and clients.