Deputy Prime Minister Dr. Olann Chaipravat urged major shareholders of blue chip firms considered shares buyback while prices are still low and reselling them when the market is recovered.

Dr. Olarn said he had also instructed the Stock Exchange of Thailand (SET) to report daily transactions of the institutional investors into 4 separated categories including Provident Fund, Long Term Equity Fund, Retirement Mutual Fund, and investment under share buyback program to help investors analyze and make decision easier during the financial crisis, as well as to help keeping the stock market stays on course.

He said the government will re-evaluate the economic growth target, which is expected to grow lower than previously projected of 4.5 per cent per annum.

Dr. Olarn also instigated Thai commercial banks to loosen their loan regulations in order to inject liquidity into the market.

“Thai commercial banks currently have sufficient liquidity, but are so scared to approve more loans. This is kind of homophobia. So, if we are scared of the dark, why shouldn’t we light things up and see the surroundings,” he said.

Tree state-owned Thai commercial banks namely Krung Thai Bank, Government Saving Bank, and Siam City Bank said they have welcomed Dr. Olarn’s measure.

Krung Thai Bank said it is willing to invest around 2 billion baht in the stock market whereas the Government Saving Bank and Siam City Bank will also collaboratively inject another 2 billion baht into the market.

Thailand Prosperity Fund noted it will cooperate with the government and is seeking to invest around 6 billion baht in the blue chip banks’ shares.

“We would use this buying opportunity since most of the major banks’ shares have fallen beyond accountable level. Bangkok Bank fell over 30 baht, while Kasikorn Bank shed 20 baht, and Ayudhya Bank tumbled 10 baht, which are considered too low comparing to their profit potential,” a news source involved in the fund said.