FINANCE
MANOP THIP-OSOD
Prime Minister Samak Sundaravej yesterday denied saying two commercial banks were on the verge of jeng, or bankruptcy, on a TV show which led to a run on the banks.
Mr Samak was replying to a question put to him by Democrat MP Korn Chatikavanij during a House meeting yesterday.
Mr Korn said Mr Samak's interview on a television show broadcast on the state-run National Broadcasting Service of Thailand (NBT) on Tuesday had caused adverse effects on the economy.
According to Mr Korn, Mr Samak told the show's host the banks had serious problems and were about to go bankrupt, forcing a sell-out to foreigners, despite a cash injection of about eight billion baht from the Bank of Thailand's Financial Institutions Development Fund (FIDF) to bail them out.
Mr Korn said Mr Samak's comments had panicked investors and prompted a run on BankThai and Siam City Bank branches over the past two days by people trying to withdraw their savings.
Mr Samak insisted he did not tell the television audience the banks in question would collapse.
He claimed he only said the banks faced problems related to the cash injection of eight billion baht and the dumping of shares held by the FIDF to other investors.
''What I said was aimed at encouraging agencies concerned to make a prompt response to me.
''If it's not true I, as the prime minister, will lose face, but if it's true, they have to be responsible for it,'' said Mr Samak.
Finance Minister Surapong Suebwonglee said yesterday the Thai banking system remained strong and that none of the commercial banks were on the verge of collapse.
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