Political turmoil may drag Thailand’s credibility down

BANGKOK, 13 April 2010 (NNT) – Violence and prolonged demonstrations in Bangkok could discredit Thailand in the eyes of world financial community and reduce confidence amongst investors.

Bank of Thailand (BoT) Governor, Dr Tharisa Watanagase admitted that Thailand is at risk to have its credibility reduced, which would increase lending costs from foreign countries. She also warned that reduced confidence among investors due to political unrest would damage the national economy.

Dr Tharisa said the political issue has already started affecting the national economy in negative ways; however, the intensity of such effects would depend on how long the demonstration of the anti-government United Front of Democracy Against Dictatorship (UDD) would last.

The governor continued to say that the clarifications of many economic indicators, such as the export, production, agriculture and industry figures, are needed to evaluate the economy.

A Monetary Policy Committee meeting will take place on 21 April 2010 in order to evaluate the national Gross Domestic Product (GDP) during which all information including domestic and global economic revival and risks would be considered.