he outlook for the impact from the current US financial crisis on Thailand is still less severe than the Asian economic crisis in 1997, triggered by the flotation of the Thai currency, the baht, according to Maris Tarab, chief executive officer of ING Funds (Thailand).
Mr. Maris said the US financial troubles had already passed through its most difficult time but that it will take two to three years for America's financial institutions to return to normal, a situation similar to that of many Asian countries when hit by financial turmoil in 1997.
Plentiful liquidity in Asia and the Middle East has been used to buy the assets of troubled American financial institutions, Mr. Maris said, suggesting that this will help speed recovery.
However, he said that mutual fund operators in Thailand have decided to delay issuing new financial and commodities instruments as most investors remain distracted by the US financial crisis.
Operators have also been forced to review their investment plans, he said.
Some foreign investors have already switched investment to Thailand which offers lesser returns but holds fewer risks, Mr. Maris explained.
By Friday, Mr. Maris asserted, Democrats in the US Congress believed a deal on a US$700 billion financial rescue package could pass by Sunday as conservative Republicans have agreed to negotiate.
US President George W. Bush said he had not given up hope and said his embattled US$700 billion financial rescue plan reflected the scale of the crisis.
Holding optimistic views on Thai exports, Mr. Maris said he believed the kingdom's exports in 2009 could still expand if the government explores new oversea markets to compensate for an expected slow down in impo ...