September 30, 2008
Bangkok - The Bank of Thailand (BoT) is ready to inject cash into the financial market if it is hit hard by the global financial crisis.
The Thai stock market opened 4.27% lower following the failure of the bailout plan for Lehman Brothers.
"We will keep closely monitoring (the situation) and make liquidity ready to help financial institutions in case of any problems," Tarisa told reporters.
She gave an interview after an emergency meeting.
The central bank governor was called by Prime Minister Somchai Wongsawat this morning to update the cabinet about the financial situation.
Deputy Prime Minister Olarn Chaiprawat and Finance Minister Suchart Thada-Thamrongvech also attended the meeting.
The US Congress disagreed to inject 700,000 million US dollars to rescue the financial institution sector.
"It is not necessary for the government to set up an equity-support fund because the private sector can still handle the problem," Olarn told reporters.
Tarisa said the US financial crisis would only have a limited effect on Thai economy while Olarn believed the private sector could handle the financial foes without the government intervention.
The BoT confirmed there were sufficient international reserves to cushion the foreign capital outflows.
The Thai bourse had rebounded to close 2.94 percent lower by midday.