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Pro-Thaksin Party Looks to Abolish Capital-Inflow Controls in Thailand
DOW JONES NEWSWIRES December 24, 2007 9:48 a.m.
BANGKOK -- Thailand's People Power Party, which won the most seats in national elections, will abolish the controls on short-term capital inflows if it forms a new government, the party's secretary-general Surapong Suebwonglee said Monday.
People Power, which is allied with ousted Prime Minister Thaksin Shinawatra, also claimed to have enough backing from minor parties to form Thailand's first elected government since a bloodless military coup 15 months ago.
Mr. Surapong told a press conference that abolishing the 30% withholding requirement on inflows would be one of the party's top priorities. The withholding measure, which requires 30% of short-term investment inflows to be deposited with the Bank of Thailand for a year, was imposed by the central bank in December 2006 to stop speculation on the baht. Critics of the move, which triggered a massive stock-market sell-off at the time, say it discourages foreign investment.
The central bank earlier this month announced a minor relaxation of the capital controls but kept them in place for investment in bonds and mutual funds. Mr. Surapong said the new government would also conduct an international investor roadshow to explain its policies.
http://online.wsj.com/article/SB119849343763348561.html?mod=googlenews_wsj
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