6B THE NATION Monday, April 27, 2009
WORLD BUSINESS FINANCIAL CRISIS
IMF SAYS TIME HAS COME TO DISCUSS EXIT STRATEGIES
Senior Executive Vice President and Director of International Banking Group, Bangkok Bank
Cherys, beer and other tasty business opportunities In the midst of a gloomy global economic environment, at least three rays of economic light are shining out of China which will be good for Thailand – these are Chery cars, beer manufacturing and the BOI's moves to expand Chinese investment in this country. The proposed construction of a manufacturing plant in Thailand for China's new Chery car will make Thailand the main production base for right-hand drive Chery cars rather than Indonesia and Malaysia. The cars are intended to be sold in Thailand and export markets. The announcement comes at a time when the automotive industry in Thailand is experiencing a drop in local and international demand. Over the last year, domestic demand has declined over 30 per cent, while exports have also fallen by over 30 per cent. With unemployment in many sectors increasing, China's proposed injection of investment in our automotive manufacturing industry will provide a welcome lift for the industry and a stable pool of jobs for Thai auto workers. China's famed Tsingtao Beer has recently entered into a joint venture with a group of Thai business partners to establish a base in Thailand. Thailand's low logistic costs for exports to the European and Australian markets and an attractive Australian free
AGENCE FRANCE-PRESSE Washington
he IMF says it is time to talk exit strategies since all members now endorse the stimulus measures taken to combat the global financial crisis and the need to clean up banks’ bad assets. “Everybody is happy with what has been done on fiscal stimulus ... all agree on the absolute necessity of cleansing the financial system,” the head of the International Monetary Fund, Dominique Strauss-Kahn said on Saturday. He said there were substantial differences, however, over what steps should be taken to prepare for the economic upturn on the other side of the crisis, adding that countries needed to have a view three to four years ahead. Some wanted to discuss the issue later but “our point of view is that the exit strategy view has to be taken into account as soon as possible,” the former French finance minister told a news conference. As the worst global slump since the 1930s spread through 2008, there were substantial differences over how much money governments should spend – even at the risk of going heavily into debt – to get their economies going again. The United States advocated
spending any amount necessary while Europe generally, and especially Germany, was reluctant to commit ever more funds, preferring to wait and see the effectiveness of initial steps. Recent economic data has suggested that the worst global slump since the 1930s Great Depression may finally be touching bottom after months of relentless bad news. The Group of Seven major economies on Friday said the situation appeared to be stabilising even if the outlook remained uncertain and major problems still had to be tackled. Strauss-Kahn, speaking after the spring meeting of the IMF board’s International Monetary and Financial Committee, said the 185nation IMF had been right to stress the need to clean up the toxic assets at the banks. The ultimate recovery “is heavily reliant on this clean-up”, he said. Strass-Kahn said the meeting in Washington, picking up from the Group of 20 London summit of developed and developing countries on April 2, confirmed that the IMF was now at the centre of policy coordination on the crisis. He noted positively broad agreement on supplying the IMF with additional funds so that it can help poorer countries struggling in the crisis. “A key achievement of today’s
Substantial differences remain on how to prepare for upturn: Strauss-Kahn
INTERNATIONAL MONETARY FUND chief Dominique Strauss-Kahn, right, and Egyptian Finance Minister Youssef Boutros-Ghali, chairman of the International Monetary and Financial Committee, hold a news conference in Washington. [Saturday] meeting is ensuring the doubling of the Fund’s lending resources,” the IMF steering committee said in a statement. In a first stage, $250 billion (Bt8.9 trillion) will be available through a special facility to help “member countries with external financing needs”. followed by another $250 billion, as agreed at the G-20 summit on April 2. The possibility that the IMF would raise extra funds by selling bonds to member states was also raised, Strauss-Kahn added. Marita Hutjes, senior adviser at Oxfam International, an anti-pover-
ty non-governmental organisation, condemned the meeting as “a wasted opportunity for poor countries”. “More should have been done. The poorest countries are still waiting for the bail-out they have been promised to survive this crisis. “They moved heaven and earth for banks; the question is when will they put the money on the table for poor countries?” Hutjes said. The IMF earlier this week sharply downgraded growth forecasts, saying it now sees the global economy contracting by 1.3 per cent this year before returning to growth of 1.9 per cent in 2010.
trade agreement are among the factors that have made this deal attractive to Tsingtao. If the deal goes ahead, the Bt2 billion brewery will be built in a province near Bangkok close to shipping ports and will export 80% of its production to the Australian and European markets. The new BOI office in Beijing which opened earlier this month is the second BOI office to be opened in China. It already has an established office in Shanghai, and a third is due to be opened in Guangzhou later in the year. The growing presence of the BOI in China not only reflects interest by Chinese companies in Thailand but it presents an excellent opportunity for Thai businesses to form strategic alliances with Chinese companies that are looking to expand into Southeast Asia. As we have seen from the actions of companies such as Tsingtao and Chery, Thailand is an important strategic gateway into the Southeast Asian, European and South Asian markets. Thailand's geographic location, combined with free trade agreements with other countries, makes Thailand a very attractive investment destination which bodes well for our future prosperity. For more columns in this series, please see www.bangkokbank.com.
ACES ON BRIDGE
SOUTH ♠ K2 ♥ K Q J 10 8 5 ◆ AK ♣ 742
Pass All pass
29 Thought 30 Fabric fuzz 31 Not punctual 32 Light-skinned 33 __-bitsy 34 Easy gait 35 Use crib notes 38 Andre the Giant, e.g. 42 Kama __ 44 Regret 45 Considered 47 Rene of “Tin Cup” 48 Bracelet site 49 Advance slowly 50 Deck with a Death card 51 Ice cream drink 52 Great Salt Lake state 53 Somewhat, in music 54 Sauna sites 58 Rage 59 IV amounts
Dilbert 1 Coffee-chocolate mix 2 How some tuna is packed 3 Beach drier 4 Dada pioneer Jean 5 Governor Schwarzenegger 6 Cut into cubes 7 Bert of “The Wizard of Oz” 8 Suffix with Canaan 9 Voice between bass and tenor 10 Oater villain who attacks from hiding 11 Norway’s capital 12 Paper quantity 13 Art Deco designer 18 Horseshoe-shaped hardware 23 “Have we –?” 25 Girl idolizing a pop star, perhaps 26 Uses a hang glider 28 Run, as colors in the wash
By Scott Adams
By Chris Browne
39 Penny 40 1960s Cosby/Culp espionage series 41 Roger of “Cheers” 42 Do axels and lutzes 43 Corned beef is usually ordered on it 45 Payable 46 Throw out of office 47 Take back, as a public statement 51 Fozzie Bear, e.g. 54 Litigant 55 Org. that sticks to its guns? 56 At the peak of 57 Noisy eater 60 Doily material 61 Clear the chalkboard 62 Queen played by Liz 63 Norse thunder god 64 Patch the lawn, in a way 65 Labor Day mo.
North 2♣ By Wiley
South holds: ♠ KJ43 ♥ 10 5 ◆ 10 7 5 4 ♣ Q74 South
Vulnerable: Neither Dealer: South The bidding: South 1♥
LEAD WITH THE ACES
EAST ♠ J 10 7 6 4 ♥7 ◆ QJ8 ♣ J 10 9 6
Hagar the Horrible
1 Big name in copiers 5 Improvise on stage 10 Yawn-inducing speaker 14 “You want the light – off?” 15 Gaucho’s rope 16 Manipulative sort 17 One who’s at home on the range 19 Venetian blind part 20 Make haste 21 Transvaal settler 22 Words after “Hi, honey!” 24 Counting everything 26 Crock-Pot potful 27 Antiquity, once 28 Gunfighters’ graveyard 32 Boneless cut 35 Jean Auel’s “The – of the Cave Bear” 36 1998 Sarah McLachlan hit 37 Boatloads 38 In what place
Pass All pass
Opening lead: Heart three
WEST ♠ AQ53 ♥ 632 ◆ 9642 ♣ 53
NORTH ♠ 98 ♥ A94 ◆ 10 7 5 3 ♣ AKQ8
PUT YOURSELF in South’s shoes in this deal from a team game. Your partner’s intelligent call of five hearts suggested good hearts and clubs, but no controls in the unbid suits. Your excellent spade and diamond values allowed you to bid the heart slam. But how do you plan to make the contract after West leads a trump? One declarer drew trumps, cashed the top clubs, and when they failed to break 3-3, led a spade back to his king and West’s ace. West now cashed the spade queen. South felt he had done his best by combining his chances in the black suits. However, at the score-up, he discovered he had lost a slam swing. Can you see why? The declarer at the other table spotted an extra chance – namely, that the Q-J-x of diamonds would fall in three rounds. After drawing trumps, he cashed the A-K of diamonds, then crossed to dummy with a club to ruff the diamond seven. As you can see, dummy’s diamond 10 was established for the 12th trick. Of course, if the diamond play had failed, the second declarer would have tested the clubs, and only when they failed to break would he have led up to the spade king. Plays of this sort are sometimes called echelon plays. If you can, you want to exploit all of your chances in order before falling back on the play that will commit you to success or failure.
West 1♥ 2♠
North Pass Pass
East 1♠ 3 NT
ANSWER: In auctions of this sort,there is no clear-cut reason to despair; your spades appear to be lying well enough, and your partner’s heart honors are over dummy. So simply lead a diamond (your long suit). Even if partner is not stacked in the suit, you may still be able to establish your long card.
Published on Apr 27, 2009
Published on Apr 27, 2009
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