IMF urges creation of Thai sovereign wealth fund

[snoop1130]

IMF urges creation of Thai sovereign wealth fund

By The Nation

 

Deputy Prime Minister Somkid Jatusripitak

 

The International Monetary Fund (IMF) has suggested that Thailand create a sovereign wealth fund, Deputy Prime Minister Somkid Jatusripitak said on Friday.

 

IMF officials had met Somid to discuss the economic situation.

 

Somkid said the IMF suggestion was prompted by Thailand’s large accumulated foreign exchange reserves of US$215 billion. The sovereign fund should invest the reserves to generate more revenue for the country like many other countries do, the IMF officials suggested. 

 

Somkid explained that making use of international reserves is a sensitive issue in Thai society. He said the government previously had asked the central bank to study the creation of a sovereign wealth fund in order to ease pressure on the baht, which in recent years has risen against the US dollar.

 

Source: http://www.nationmultimedia.com/detail/business/30340585

 

-- © Copyright The Nation 2018-3-9

[darksidedog]

Given the financial raping of the country by pretty much every elected and unelected official in recent history, letting someone "invest" $215 Billion Dollars is likely to generate more revenue for the officials, not the country.

[rkidlad]

11 minutes ago, snoop1130 said:

Somkid explained that making use of international reserves is a sensitive issue in Thai society

Oh, yea! When they're not secretly talking politics, they're secretly talking about international reserves. 

[YetAnother]

43 minutes ago, snoop1130 said:

Somkid explained that making use of international reserves is a sensitive issue in Thai society.

OMG, here we go again;'we are different','you don't understand us', 'the thai way', on and on;

on the world's stage, thailand is a footnote, yet these fools here bridle at constructive criticism from experts not-thai

[JOC]

Actually a very sensible approach by Khun Somkid......The foreign reserves are not play money, especially with the high valuation of all stock exchanges at the moment......Yes Thailand may miss out on a little upside....but will be among the winners come a crash.......

[wattaman]

"IMF urges creation of Thai sovereign wealth fund"... to allow them safer access to the Thai reserves. 

Nice one, IMF... could have been more subtle, though.

[Cadbury]

2 hours ago, snoop1130 said:

Thai sovereign wealth fund

Wow! A Thai Sovereign Wealth Fund for the already wealthy and greedy. 

For politicians, high flying civil servants and those "connected" comes a once in a lifetime opportunity.

Expand your corruption portfolio now!

Call this number to get in on a whole new range of exciting "opportunities". Wink, wink..nudge, nudge.

Phone 000 1234 now!

Sales staff are on standby and waiting to take your call.

Edited March 9, 2018 by Cadbury

[RichardColeman]

Meh , it will get spent on something military before anything useful  !

[Eric Loh]

Worthy of consideration SWF. Most countries with large reserves utilize their reserves to generate revenues. Singapore Temasek manage a portfolio of about SD200 B and generate an income of about SD18 B. That’s equivalent to almost 400 B Baht. Not small beans. 

 

New strict laws with severe deterrents can be written to protect this SWF from unscrupulous officers. The entity that will be set up to manage this portfolio must be selected and appointed with utmost scrutiny and diligence. Merit base and international. It can be done; sooner the better. 

[Srikcir]

18 hours ago, snoop1130 said:

the government previously had asked the central bank to study the creation of a sovereign wealth fund in order to ease pressure on the baht

As the pressure on the baht has not forced its devaluation, the SWF isn't needed.

 

18 hours ago, snoop1130 said:

The sovereign fund should invest the reserves to generate more revenue for the country

Like maybe support various programs by the Thai Niyom Yang Yuen that focus on enhancing farming, road safety, the welfare card scheme and informal debt for civilians. But the government is more likely to dip into the treasury through debt financing - keep the reserves for "special" projects as identified by the military. 

[ericthai]

13 hours ago, Eric Loh said:

Worthy of consideration SWF. Most countries with large reserves utilize their reserves to generate revenues. Singapore Temasek manage a portfolio of about SD200 B and generate an income of about SD18 B. That’s equivalent to almost 400 B Baht. Not small beans. 

 

New strict laws with severe deterrents can be written to protect this SWF from unscrupulous officers. The entity that will be set up to manage this portfolio must be selected and appointed with utmost scrutiny and diligence. Merit base and international. It can be done; sooner the better. 

That could work in other countries, but this is Thailand, no law is going to stop the corrupt officials from diverting funds to themselves.  If they get caught they will be moved to an "inactive" position. 

[Fish Head Soup]

Looks like we're going to need bigger suitcases dear...

[Number 6]

Strong thb pretty much over a decade. Slow and steady.

 

IMF wants Thailand to assist in continuing on with the world equities fraud especially at this stage of the game.

 

Thailand can just invest in itself, everyone is investigating here.

 

It's all going to end horribly. Stock and bond markets.

 

Worst advice ever - they didn't take their advice in 97 and it worked out just fine.

[davehowden]

Strange, I thought Thailand already had a "Sovereign Wealth Fund".