LATE NEWS

Manila opts for liberal stance

The Philippines is set to liberalise existing restrictions on capital outflows as a way of hedging against the strong influx of foreign money, while keeping its monetary policy steady for now.

Sources at the central bank, Bangko Sentral ng Pilipinas (BSP), yesterday said a package of measures to liberalise capital accounts, focusing on outflows, was being prepared and would soon be presented for approval by the Monetary Board. "We will be responding to capital flows in due time," said a BSP source. "We have to do something about the expected heavy inflows."

Officials said the package would include changes to the overbought position or the amount of US dollars that banks are allowed to buy from the spot foreign-exchange market. - Philippine Daily Inquirer, Asia News Network.

AOT blamed

Airports of Thailand has caused some Bt2 billion in damage to the country from granting the duty-free concession at Suvarnabhumi Airport to the King Power International Group, a National Legislative Assembly panel said yesterday.

Pathompong Kesornsuk, chairman of the panel investigating the AOT-King Power contract, said that in its bid, King Power had proposed an additional Bt2-billion benefit to AOT if it won the duty-free concession, aside from the minimum benefit sharing of Bt1.43 billion in the first year.

Pathompong said the Bt2 billion never appeared after the concession was awarded. The subcommittee will summon Vuthipan Vichairat, the AOT director who chaired the panel that named King Power, in order to find out where the money is. - The Nation.

Rice holds up

Commerce Minister Krirk-krai Jirapaet yesterday insisted the strong baht had not held back the rice trade, because exporters have already received orders for 600,000 tonnes this month. After meeting Deputy Prime Minister MR Pridi-yathorn Devakula, he said the orders were equivalent to those in previous years and average prices had risen. - The Nation.

Elite discussions

The future of the Thailand Elite Card hangs in the balance and those asked to recommend its future wrap up their discussions on February 13.

Tourism Minister Suvit Yodmani will present his recommendations for the card and its operator, Thailand Privilege Card, to Deputy Prime Minister and Finance Minister MR Pridi-yathorn Devakula two days later.

Suvit's committee yesterday said some conflict of interest had been found in the running of the scheme. "However, our recommendations will be if the project should be scrapped or continued," Suvit said.

PM Surayud Chulanont will make the final decision on the company and card's future. - The Nation.

The Nation Thailand
Sunday January 28, 2007