International Monetary Fund (IMF) managing director Michel Camdessus last night strongly criticised Thailand's government for repeatedly ignoring his organisation's warnings that the country's economy was heading for a crisis.
His comments came after the IMF formally approved the US$16.7 billion rescue package announced last week and revealed the extent of the sweeping measures which will give it a tight grip on the troubled Thai economy.
Speaking at a news conference, Mr Camdessus rejected suggestions the IMF could have done more to avoid Thailand's problems, saying: 'Everything was done to make Thailand authorities knowledgable of the risks they were taking by delaying action.' He said: 'Let me put it very bluntly - Thailand's problems could have been corrected at much less cost to their economy and the economies of the neighbouring countries if the problems had been addressed in a more timely manner.' Mr Camdessus said his officials had issued several warnings since 1996, adding 'the message was received and understood'.
However, Mr Camdessus, who arrives in Hong Kong next month for the World Bank/IMF annual meetings, praised Thai authorities for moving 'very boldly' to co-operate with it and neighbouring countries to implement stringent new measures to nurse the economy back to health.
'I strongly believe we have seen the worst of the crisis provided that this programme is implemented with a perseverance which will match the boldness of the measures.' Of the success of last week's meeting in Tokyo to discuss the rescue package, Mr Camdessus said: 'The speed of regional co-operation in reaching an agreement was truly impressive and augurs well for future co-operation in the region to the benefit of both Asia and the world's economy.' He said although he was heartened by the speed and the strength of the solidarity shown by the region, other countries should learn the lessons of the tremendous costs resulting from governments delaying action in the face of a crisis like Thailand's.
He said the rescue package showed the safety net system of accelerated intervention established by the IMF after the Mexican crisis in 1995 was 'working and working well'.
