management mechanisms able to handle foreign exchange settlements under different time zones, and a standardized payment system that allows international connectivity for example. these undertakings, in turn, would lay the foundation for more efficient intra - regional trade and investment within the aec. the challenge for payment system policy consists of keeping a balance between encouraging bis central bankers ’ speeches development for efficiency gain, and ensuring that there is adequate supervision in place to ensure a safe and sound payment system for thailand. conclusion i believe that thailand has one of the highest potentials in the region. though there are challenges ahead, opportunities abound. the bot, as a key policy maker, will endeavour to implement economic policies under its purview in a timely and judicious manner. we are ready to work with all parties, public and private alike, to create a supportive environment conducive to sustainable growth. i trust that, through closer policy coordination among all relevant agencies, a common vision for the country will emerge, leading ultimately to constructive engagements between all parties. with a shared vision and collective efforts, our goal of long - lasting prosperity for the nation is not beyond our reach. thank you. bis central bankers ’ speeches

fiscal compact results in handicapped liquidity support efforts on the part of the authorities and heightened market concerns. rising risk premium leads to explosive debt dynamics, loss of market access and rollover difficulty, which in turn leads to even greater liquidity needs. with the cost of rescue mounting, internal country politics may further delay policy leading to a vicious cycle between rising rescue costs and policy inaction. there are signs that these risks are very real. for example, last month in late july, spanish bond yields recently jumped up again over 7 percent, making the country ’ s debt dynamics unstable. there has also been upward pressure on italian bonds. the ecb came to the rescue by promising to “ do whatever it takes to preserve the euro as a stable currency ”. markets stabilized and yields came down. the us stock market also picked up. nevertheless, the risk that yields could erupt again persists, especially if concrete progress in implementing policy does not take place. in the event of a liquidity seizure, there will be considerable spillover into global financial markets. trade will decline amid the credit crunch that will surely follow. asia, thailand included, will not be spared the turmoil. so that ’ s the extreme scenario. now let me go over the baseline scenario. in this scenario, piecemeal policy averts a systemic crisis and leads to a prolonged recovery. in the baseline scenario, progress in implementing policy remains bogged down by internal politics but makes sporadic progress, especially once the possibility of a systemic crisis becomes all too real. this scenario is basically a continuation of the present state of affairs with which you are all familiar. global capital markets are in flux. and global trade slows down. the recovery process is long and drawn out and the authorities eventually make progress on fiscal integration and banking union. so which scenario will be likely? this is the big question mark. there is considerable uncertainty due to the ups and downs of internal politics. but political imperative to maintain the union has always been strong. and a strong union needs a stable common currency and economic growth. once the crisis becomes imminent and threatens the union, authorities will have no choice but to take decisive action to avert a systemic crisis. so those are of my views of how the euro crisis will play out. let us move to the second question : can thailand grow through the euro crisis? yes, long - term sources of growth remain but adjustment pain will be unavoidable. in a globalized world, nobody is immune from