Cautious steps towards reviving the economy

[webfact]

Cautious steps towards reviving the economy

By The Nation

 

 

After a Cabinet meeting on Tuesday (April 21), Prime Minister Prayut Chan-o-cha said that though there are fewer new Covid-19 infections, the authorities need to be very cautious with the steps they take. He added that he will not be pressured into anything, but will consider every fact thoroughly before making a decision otherwise all the good work done so far will be lost.

 

As for the lifting of the state of emergency, he said it will be considered next Tuesday and the decision will be based on updates provided by the Public Health Ministry.

 

Prayut also referred to the three decrees issued to solve the crisis, which allow the Finance Ministry to borrow money to restore the economy, the central bank to work with the ministry to maintain the country’s liquidity by raising Bt400 billion through bonds, and helping small businesses with soft loans under a Bt500-billion fund allocated for the purpose.

 

Ratchada Thanadirek, deputy government spokesperson, said the Cabinet approved a draft proposed by the Prime Minister’s Office authorising the Finance Ministry to take loans to ease the country’s economic problems.

 

The draft is divided into six sections, namely:

 

1. Defining the responsibility of each relevant agency:

a. The Budget Bureau tasked with allocating the loan based on the limit approved by the Cabinet and specifying the relevant rules and practices;

b. The Comptroller General's Department accepting loans on behalf of the Finance Ministry and creating an accounting system, a loan-disbursement system, as well as setting relevant criteria or practices;

c. The Office of Public Debt Management procuring and depositing the loans, establishing a cash-management system and reporting on the loan’s status, including setting criteria or related practices.

 

2. Consideration and approval based on specifications of the project loans are being sought for:

a. If the project’s objectives are in line with those specified in the decree;

b. If the project is urgent enough and has not been allocated sufficient funds;

c. If the project can be implemented immediately after gaining Cabinet approval;

d. If the project is worthwhile and provides economic or social benefits in line with objectives specified in the decree;

e. Other characteristics as specified by the board

 

3. How the projects will be implemented, how funds will be allocated, supplies will be disbursed and steps that will be taken if details are transferred or changed, including operation guidelines once the project has been completed.

 

4. The Public Debt Service Office will deposit the funds borrowed by the ministry in an account called “Loan based on the Emergency Decree to Solve Problems of Covid-19” and specify all disbursements made in line with rules and regulations prescribed by the Finance Ministry.

 

5. The use of the funds will be monitored and evaluated to see if it is in line with the rules and regulations prescribed by the Finance Ministry.

 

6. Funds can be reserved for projects awaiting Cabinet approval.

 

Source: https://www.nationthailand.com/news/30386504

 

-- © Copyright The Nation Thailand 2020-04-22

 

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[cornishcarlos]

Seems those funds are going through lots accounts before they reach the final destination ?? 

I'm sure it's all above board and transparent though... 

[Thaiwrath]

2 hours ago, webfact said:

He added that he will not be pressured into anything,

Unless told to, by the puppet masters !

[metisdead]

A post using a dangerous connotation has been removed. 

[Buffy Frobisher]

"The Comptroller General's Department accepting loans on behalf of the Finance Ministry and creating an accounting system, a loan-disbursement system, as well as setting relevant criteria or practices" ????

 

Well, that'll no doubt be a first - the Comptroller General's Department creating an accounting system. Time to put away that pesky old abacus that never seems to balance the numbers properly?  Nah, that's too much to ask for.

 

On your marks - get set - snout's in the trough!

[Chassa]

3 hours ago, webfact said:

He added that he will not be pressured into anything

Love that total control!

[metisdead]

A post using a link to an unapproved YouTube source has been removed:

 

18) Social Media content is not to be used as source material unless it is from a recognized or approved news media source, the source of any such material (Twitter, Facebook etc.) should always be shown.

[spidermike007]

Will take some time to see how this all shakes out, but it is my opinion that the economic fallout from the inane economic shutdown, is going to be 200 times worse than Covid itself, and the recovery "ramp up" will be long and excruciating. Far longer than they say. It will not just bounce back. In the history of the world, as far as we know, there has never been a deliberate worldwide economic shutdown. It is light years beyond dumb.

 

The "slowdown" will last well into 2021, for certain. And some industries may never come back, or will be a pale shadow of their former selves. No doubt homelessness will skyrocket in the US. Here? Who knows. Tourism in Thailand will never recover to even close to it's former levels, and that leaves millions out of work.

 

What about concerts? Will people be willing to hang out with crowds of 20,000, at a small fortune for a crappy seat? Same with sports. Will people be willing to go into a stadium or an arena with 20,000 to 100,000 people close together, and pay crazy money for a seat?

 

Movie theaters? Cruise ships? Will the hordes just start descending on restaurants again, and pay high prices for a gourmet meal? The list goes on, and on and on. 

 

And in the end, hundreds millions worldwide could end up far poorer than they were before. And tens of millions could end up starving to death, compared to perhaps 200,000 or so total deaths worldwide from Covid. OK. The rich stay safe and financially secure. And the rest of us? And those of us who are self employed, without fortunes in the bank? 

[Isaan sailor]

Today Moody's took a cautious step also.  They downgraded Thailand's debt from "Positive" to "Stable" and gave them a grade of Baa.  

A small step, but could help reduce the onslaught of emerging market bound funds from wealthy international investors and traders.  Instead of Thailand in lowest risk pool, they will move down a notch.  Let's see if this good news helps to sink the Baht.

https://www.moodys.com/research/Moodys-changes-Thailands-rating-outlook-to-stable-from-positive-affirms--PR_422559?cid=HFGG75LYEO30&yptr=yahoo

Edited April 22, 2020 by Isaan sailor

[topt]

1 hour ago, Isaan sailor said:

Today Moody's took a cautious step also.  They downgraded Thailand's debt from "Positive" to "Stable" and gave them a grade of Baa.  

A small step, but could help reduce the onslaught of emerging market bound funds from wealthy international investors and traders.  Instead of Thailand in lowest risk pool, they will move down a notch.  Let's see if this good news helps to sink the Baht.

https://www.moodys.com/research/Moodys-changes-Thailands-rating-outlook-to-stable-from-positive-affirms--PR_422559?cid=HFGG75LYEO30&yptr=yahoo

If I read that correctly (your link) then it appears to me that they only changed the narrative from Positive to Stable and the rating stayed the same? if so then I doubt it will have much impact.

[marko kok prong]

Where is Sir Humphfrey  when you need him,cannot  not pull him out of retirement.

[timendres]

6 hours ago, spidermike007 said:

Will take some time to see how this all shakes out, but it is my opinion that the economic fallout from the inane economic shutdown, is going to be 200 times worse than Covid itself, and the recovery "ramp up" will be long and excruciating. Far longer than they say. It will not just bounce back. In the history of the world, as far as we know, there has never been a deliberate worldwide economic shutdown. It is light years beyond dumb.

Oil futures being priced at negative $40 seem to agree with your "beyond dumb" assessment.