October 29, 2008
Bangkok - The cabinet today agreed to extend guarantee on bank deposits for two more years in a hope to boost confidence amid global financial crisis.
The global economic crisis is leading to more and more shortage of funds worldwide. Such crisis was triggered by the US financial crisis.
As a result, investors are afraid that their money will not be safe in banks.
"The cabinet has approved the finance ministry's proposal to extend the 100 percent guarantee on deposits to August 10th, 2011," Finance Minister Suchart Thadathamrongvej said.
"The extension is due to the financial crisis... as most countries are suffering from liquidity crises," he added.
Thailand agreed in August to guarantee all banking deposits for one year.
The deposit protection will be reduced three years later. The maximum of one million baht per account is guaranteed in the fifth year.
There were six trillion baht deposited in Thailand-based banks at the end of September, according to Deposit Protection Agency.
