■ Bad loansBank head says he won't quit
The governor of Thailand's central bank has dismissed rumors he would quit over a bad-loan crisis at the country's second largest lender, according to reports yesterday. Shares in Krung Thai Bank (KTB) have slumped 32 percent since last month when the bank revealed that its non-performing loans had increased by 57 percent in the second quarter. "Why should I resign? I have done the right thing in strengthening Krung Thai Bank financially to restore confidence among local and foreign investors," M.R. Pridiyathorn Devakula was quoted as telling reporters in The Nation newspaper. The Bank of Thailand head came under fire after reports of lax lending practices at KTB and he was forced to defend its supervision of the sector.
■ Investment
Singapore probes Vietnam
More than 60 executives from Singapore will converge in Vietnam on a four-day business scouting trip starting on Tuesday. Seeking new ventures in the quickly liberalizing economy, the executives will be accompanied by Acting Second Minister for Finance and Senior Minister of State for Foreign Affairs Raymond Lim to Hanoi and Ho Chi Minh City. The companies represented are in the infrastructure, logistics, healthcare and lifestyle fields, said Lee Yi Shyan, chief executive of International Enterprise Singapore, the trade promotion agency.
■ Economy
Canadian trade surplus up
Canada's merchandise trade surplus hit a record C$8.6 billion (US$6.5 billion) in June, Statistics Canada said. The surplus, which was well above economists' forecasts, resulted from increased demand worldwide as well as the economic recovery in the US, the agency said. The government agency said that exports from Canada rose 4.4 percent during June. At the same time, imports fell by 3.7 percent. Much of the decline in imports reflected reduced imports of machinery and other equipment, particularly from the US. Overall, Canadian exports to the US rose 2.9 percent while purchases from the US declined 3.6 percent. Canada's trade surplus with the US stood at C$10.7 billion, its second-highest level in history.
■ Exports
Brazil raises outlook
Citing stronger-than-expected exports in the first seven months of the year, Brazil's government raised its trade surplus forecast for this year to US$30 billion, up from a record US$24.8 billion last year. The Trade Ministry also said it now expected exports to total US$90 billion at the end of the year, up from a previous estimate of US$88 billion. Last year, Brazilian exports rose 21 percent, to US$73 billion. President Luiz Inacio Lula da Silva, who took office in January last year, has said he expects annual exports to reach US$100 million before the end of his four-year term.
■ Telecoms
Warburg sells Bharti shares
The private equity firm Warburg Pincus sold a 3.35 percent stake in India's second-largest mobile services company, Bharti Tele-Ventures Ltd. According to a statement to India's stock exchanges Friday, Brentwood Investment Holdings Ltd, a unit of Warburg Pincus, sold 62 million shares. Citigroup Global Markets, which arranged the sale, said Warburg Pincus was paid US$207 million for the shares, according to Bloomberg News. Warburg Pincus, which is based in New York, is left with a 15.17 percent stake in Bharti.
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