BoT says Thailand’s monetary still stable

BANGKOK, June 11 (TNA) -- Thailand’s monetary system is still stable and this could be seen from strong financial positions by large-sized financial institutions and business enterprises, said the Bank of Thailand (BoT). A meeting was held Friday by the BoT, the Monetary Policy Committee and the Financial Institutions Policy Committee in which senior officials agreed that the outlook of Thailand’s monetary system is still positive although debtors are unable to repay debts due to sluggish economy and severe drought prevailing in the country earlier this year. Small and medium-sized enterprises along with farming households are encountering cash flow problems, said the BoT. But financial institutions have high reserves. Thailand’s monetary positions in overseas also looked positive and this could be reflected by high current account in surplus and the international reserves which could cushion monetary uncertainties of major industrialised countries, a default by China’s large-sized enterprises and the United Kingdom European Union membership referendum. A referendum is being held on June 23 to decide whether Britain should leave or remain in the European Union. Persisting low interests which have continued a long time have forced investors to increase investment in high risk ventures are worrying the central bank, it said. Concerned agencies including the BoT and the Securities and Exchange Commission are closely monitoring risk factors and have amended regulations on a regular basis. (TNA)