Oct. 9 (Bloomberg) -- Bank of Thailand Governor Pridiyathorn Devakula was appointed interim finance minister of the Southeast Asian country, which is seeking to boost confidence in its economy after a Sept. 19 coup.

Prime Minister Surayud Chulanont, 63, who was installed last week by the junta, named the governor and Bangkok Bank Pcl Executive Chairman Kosit Panpiemras as deputy prime ministers. King Bhumibol Adulyadej endorsed the 26-strong Cabinet lineup last night, which was announced early today.

Pridiyathorn, the great-grandson of a Thai king, needs to bolster confidence in an economy forecast to expand just 4.2 percent this year, the slowest pace in five years. The 59-year- old reined in inflation by more than quadrupling interest rates after taking over the central bank in 2001. No successor as governor has been named.

``It's not the dream team, it's not the who's who of each particular portfolio,'' said Victor Yuen, co-chief executive officer at UOB-Kay Hian Securities (Thailand). ``But in terms of what the current interim government is trying to achieve on a sustainable basis, I think it's commendable that it's able to come up with such a lineup.''

The new interim Cabinet will be sworn in by the monarch at 5 p.m. today and will hold its first meeting tomorrow, Yongyuth Mayalarp, spokesman for the interim government, told reporters. A full appointment list was broadcast on Radio Thailand and a list was distributed by the interim administration today.

Economic Growth

Surayud, an adviser to the king, said his interim government will aim at reconciling rival factions within the country by focusing on ``the indicators of the people's happiness'' instead of bolstering a slowing economy. A day after his appointment, he named Pridiyathorn as his first Cabinet member, without specifying which ministry.

Pridiyathorn was appointed head of the junta's economic advisory panel on Sept. 27. He forecast Oct. 3 that Southeast Asia's second-biggest economy will grow faster in 2007 than this year as political stability, higher government spending and lower oil prices boost confidence.

``These people do have a sort of pro-business background,'' said Alistair Thompson, who helps manage $15 billion of equities in the Asia Pacific and global emerging markets at First State Investments in Singapore. ``We're actually cautiously optimistic that the economy isn't going to implode in any way.''

Other Ministers

Bangkok Bank's Kosit, who was also named industry minister, has headed Thailand's biggest lender by assets since December 1998 after serving as executive director.

Kosit was finance minister for 11 days in 1997 in the government of former Prime Minister Chavalit Yongchaiyudh. Chavalit resigned in November 1997 after failing to prevent the economy from sliding into a recession.

Nitya Pibulsonggram, 65, a former free-trade negotiator and ambassador to the U.S., was named foreign minister.

Krirk-Krai Jirapaet, former permanent secretary of the commerce ministry, is the commerce minister. Krirk-Krai, who was Thailand's former ambassador to the World Trade Organization in the late 1990s, also acted as vice tourism minister in the aftermath of the 2004 tsunami in Thaksin's administration.

Piyasvasti Amranand, chairman of Kasikorn Asset Management Co., the fund management unit of Thailand's fourth-largest lender, was appointed energy minister, the junta said today. Charnchai Likhitchittha, 60, president of the Supreme Court, was named justice minister. He was due to retire this month, ending a judicial career that began with his appointment as an assistant judge in 1972.

Interior

Aree Wongsearaya, former permanent secretary of the interior ministry, was named the interior minister -- a position that will probably see him focus on resolving a violent insurgency in Thailand's southernmost provinces. Aree, a Muslim, was a deputy education minister in Thaksin's administration.

Two retired generals made the Cabinet lineup. General Boonrawd Somtas, former chief of staff at Thailand's army, was named defense minister. Theera Haocharoen, a former navy general, was named the transport minister.

Theera Sutabutra, former president of Kasetsart University, an agricultural research institution, was named agriculture minister. Mongkol Na Songkhla, a former secretary general of the Public Health Ministry, was named health minister.

Paiboon Wattanasiritham, former president of the Government Housing Bank, was named social development and human security minister. He's married to Jada Wattanasiritham, who is president of Siam Commercial Bank Pcl, Thailand's third-biggest lender.

Suvit Yodmani was designated Thailand's tourism and sports minister.

``The most urgent task for the new government is to clearly explain to foreign investors their policies,'' Santi Vilassakdanont, chairman of the Federation of Thai Industries, said in an interview. He rates the new lineup eight out of 10. ``Investors want to know whether there will be a continuity from the previous government.''

To contact the reporters on this story: Beth Jinks in Bangkok at bjinks1@bloomberg.net; Anuchit Nguyen in Bangkok at anguyen@bloomberg.net

Last Updated: October 9, 2006 01:23 EDT