Both the Japanese government and financial institutions have promised to help Thailand recover from the currency crisis that forced officials in Bangkok to allow the baht to float July 2. In meetings in Tokyo July 17 and 18 Thai Finance Minister Thanong Bidaya obtained a pledge from his counterpart, Hiroshi Mitsuzuka, that Japan would intervene to help support the Thai currency at Bangkok's request. Mr. Thanong also met with Japanese business leaders, including top executives of the 21 banks with operations in Thailand. While details of the meeting were not disclosed, the banks have said that they will continue normal business operations in Thailand and maintain lines of credit to companies there. That support is critical.
Japan is Thailand's largest lender.
It also is the Southeast Asian country's biggest trading partner and foreign investor. However, no mention was made of the plan during Mr. Thanong's visit to Tokyo, and Finance Ministry officials have provided no further information about it. The Thai currency problems that have raised concerns in Tokyo and throughout Southeast Asia began as early as February, but the financial crisis erupted in May when speculators started to bet heavily against the baht. The baht plunged more than 15 percent against the dollar in the following days. The currency market turbulence subsequently spread to the Philippines, Malaysia and Indonesia and then to countries as far away as Brazil.