Good afternoon,

Despite a fair amount of talk from bankers and financiers of various stripes about the strength of Thai banks, their conservatism since the 1997 crisis and so forth, a plan has been announced to recapitalize the Exim Bank and the Small Business Credit Guarantee Corp to the tune of eight billion baht – this money will be used to boost the ability of small business to borrow and invest. There will be more bad news to come out shortly, I suspect – people have been talking up Thailand’s prospects but the country remains particularly vulnerable to economic downturns because of its reliance on exports, tourism and other externally-oriented industries.

Three police officers have been killed by a roadside bomb in Pattani that exploded as they were returning to their station after escorting teachers to school.

There is supposed to be a new stage in the long running decision process over whether to build nuclear power plants in Thailand and, if so, where they should be located. A consultant company is due to announce five possible locations, from which three will be selected by the appropriate committee for submission to the cabinet – the decision should be made by May 2010, although this may be delayed if a new government/regime has been installed by then, which seems possible. It is said that, in the meantime, education of the public will be an important task, which is saying something. Presumably, given the record of Thai facilities with respect to safety and pollution, there will be quite substantial protests by residents in any communities likely to be affected. NGOs and foreign demonstrators will also be involved, no doubt.

Back tomorrow.