BOT ready to offer liquidity

He said the BOT would ask large commercial banks to provide liquidity to any insurance firm facing financial trouble. "It's only a preparation for the worst-case scenario," he said.

He said the US financial crisis had not had any negative impact on local life-insurers. The government and the BOT are closely monitoring the economic situation, he added.

"I can assure everyone that there will not be another financial crisis like the one in 1997," he said.

Suchart, leader of the Puea Thai Party, was yesterday appointed the new finance minister.

He intends to persist with the six cost-relief measures implemented by the Samak Sundaravej government. He also vowed to fully support grass-roots people through government spending projects.

Reacting to criticism by the private sector of the new economic team, Suchart asked for an opportunity to work. He said he was ready to quit if he could not deliver a good performance.

He also assured that he would work closely with the central bank, even though he may have a different opinion about monetary policy. He said the current baht level of between 34 to 35 to the US dollar was appropriate.

Suchart said the country should further open up for foreign investment, as it still needs foreign capital and technology.