Thailand approves $6.9 billion borrowing plan for revenue shortfall from COVID-19

[geriatrickid]

7 hours ago, Chelseafan said:

The borrowing is part of an adjusted debt management plan which now sees net new debt of about 1.66 trillion baht, up from about 1.5 trillion baht, plus some debt reductions, deputy government spokeswoman Rachada Dhnadirek told a briefing.

 

NEW debt of $53 billion or 10% of GDP. This cannot be sustainable when around 20% of the countries income is from tourism.

Tourism is made up of  domestic tourism and foreign tourism.

According the the Thai government's data, foreign tourists provided 1.93 trillion baht (US $59.98 billion), or 11% of GDP last year.

Although many sectors of the economy are off, agriculture exports, medical supplies and equipment, and financial services are expected to grow and to offset some of the losses in general manufacturing and other services.  Also,  domestic tourism will continue. Many of the Thais who were taking junkets to Hong Kong, Japan and europe are going to opt for staycations.  On that basis, I expect that the borrowing reflects the actual conditions.

 

 

 

 

[Pilotman]

$6.9 billion isn't going to go very far, many times that will be needed to force a recovery and cover Covid costs. This looks like optimism over reality.  

[animatic]

2 hours ago, Bim Smith said:

They need the 60 billion to prop up the bht

Give the big banks 500 billion for 0.01 interest.

Borrow it back for 2% interest.

Banks happy, tax payers not so much.

And when the current protesters figure out this scam, the streets will fill even more.

Such a colossal misjudgment.

Edited August 19, 2020 by animatic

[keithkarmann]

2 hours ago, Bim Smith said:

Thai Airways is no longer a state enterprise? Since when? 

  When do I get my refund?

[tandor]

..cancel the 2 Submarines..should help balance the books!

[Flying Saucage]

1 hour ago, elgenon said:

Did they say who they are borrowing from? Bar girls? Farangs? China?

Surely from China. It's called Chinese road and belt initiative. Let's sell the whole country to China!

[Mr Meeseeks]

13 minutes ago, keithkarmann said:

  When do I get my refund?

Good luck with that mate, they are bankrupt.

[Pilotman]

2 minutes ago, Flying Saucage said:

Surely from China. It's called Chinese road and belt initiative. Let's sell the whole country to China!

Not just the Thais: 

 

China takes the second spot among foreign holders of U.S. debt with $1.07 trillion in Treasury holdings in April 2020, just behind Japan.Apr 27, 2020

[John CS]

4 hours ago, M71 said:

Wow the Central Banksters / IMF have Thailand by the balls as well as every other country on the planet. In debt up to the taxpayers eye balls.

 

Welcome to the new terrorist on the block - no it ain't Bin Laden, no it ain't the Communists - it's COVID-19 ! - the unseen worldwide terrorist you can't see, can't hear, can't touch and can't confront.

 

Stay scared sheeple - and do whatever your told - or we'll come get ya!

 

 

Wow , surprised they allowed you to post this

Spot on , its a well recognised international  plan, except for Trump , he is undermining this plan and undercutting the Central Banks and the WEF/IMF/UN globalist plans

Destruction of small businesses , and disenfranchise your people, Governments should be held accountable people.

They did this , never attempted before Agenda 2030 ongoing , it must be fought ,nothing to do with People or Democracy , everything to do with maintaining Power and greater control

 

[TERMINATOR3AB]

Yes   Poor  Thai people  they are the ones to suffer

Do the ones  who  make these  decisions  lack  money or income  no

But  they feel good  as they are paid  to  do something

if  only  10%  of that  was to go to  road driver  eductaion more  road patrol  police  who  do  not take bribes ( mmm  that is a  big ask ...lol)  look at  the lives  they would save 

Sad  The rich  not worry about debt  they do not have any 

Let the poeple  have a Gov  of not wealthy  normal   poeple  then see how the  country  would improve 

The  young will suffer  most   so  all you big wigs  look out

Viva  Revoltion!!   History speaks for itself  over 100,s  of  years  

When enough is  too much heads will roll

[kickstart]

2 hours ago, hotchilli said:

Thailands bubble will burst soon, Thais are up to their necks in debt, no work and little chance of paying it back. The governments revenue is hemorrhaging due to unemployment so they are borrowing up to the hilt.

Maybe a last ditch begging letter to the super rich again before the big bang?

I was here in 1997 after the crash ,Bangkok was almost like a ghost town all construction had stopped ,they borrowed a record amount from the IMF and World Bank ,

It was Tucksin that paid back the last instalments  to the banks ,and it was paid back in record time .

Thai's seemed to just spend they way out of a resection ,will it be the same this time ,the Achilles  heel is of course tourism ,then in 1997 it was 70-80 baht/pound ,but this COVID-19 job could be just a blip on the economy ,who knows,  watch this space .

[rupert the bear]

they could always get a loan from the devil himself,hed love that,its but a phone call away and of course comes with little pay back ask the africans ,im sure uncle knows the beijing pre fix,theyve been waiting for a tinkle for quite some time,see the extra privileges the master race will be endowed with,coming soon!!

[AussieinThaiJim]

8 hours ago, Chelseafan said:

The borrowing is part of an adjusted debt management plan which now sees net new debt of about 1.66 trillion baht, up from about 1.5 trillion baht, plus some debt reductions, deputy government spokeswoman Rachada Dhnadirek told a briefing.

 

NEW debt of $53 billion or 10% of GDP. This cannot be sustainable when around 20% of the countries income is from tourism.

 

 

This is a drop in the ocean compared to the debt to GDP ratios of a lot of countries post COVID. Have a look at the USA!

The United States recorded a government debt equivalent to 106.90 percent of the country's Gross Domestic Product in 2019.

 

•  
• 

[heina]

1 hour ago, elgenon said:

So they are printing the money?

Bank note = debt.

More debt, less future income.

 

Main question. Who is Bank of Thailand belongs too? 

If government needs to loan from banks then Bank of Thailand does not belong to Kingdom.

Only big banks are profiting from Bank of Thailand debt issue.

Who is big banks belongs too (Kasikorn Bank as example)?

STATE STREET BANK 

HSBC BANK

CHASE NOMINEES

MELLON BANK

THE BANK OF NEW YORK 

They're US Federal Reserve founders and prime dealers.

Does Kingdom really need support them?

 

Edited August 19, 2020 by heina

[Flying Saucage]

I was thinking why oh why do most of these countries in South East Asia create so much ongoining panic and paranoia about Covid, instead of going a more pragmatic but nevertheless safe way like Europe, opening the borders, doing intensive Covid testing, allowing the economy to recover, publishing the real numbers of Covid in a transparent way ...

Maybe there is a bigger master plan behind it. Maybe they willingly ruin the countries. I think the reason might be that most of these countries are governed by dictators or wannabe dictators in fake democracies, corrupt the whole lot. Corrupt people take money. Let's say from China. At the end it's a win-win situation for them and for China. They get some million $ under the table. China gets the bankruptcy assets of the countries industries as a bargain. Big monopolies in the countries might also players in this game. The fate of the people plays no role to them.

 

Edited August 19, 2020 by Flying Saucage

[hotchilli]

13 minutes ago, kickstart said:

Thai's seemed to just spend they way out of a resection ,will it be the same this time ,the Achilles  heel is of course tourism ,then in 1997 it was 70-80 baht/pound ,but this COVID-19 job could be just a blip on the economy ,who knows,  watch this space .

What you said about 1997 time is correct, but this time with the trade/commerce economy in real trouble and tourism at zero I think they're in a real fix.

This time baht strength is really hitting everything, not at 70's as it was then.

[PETERTHEEATER]

10 hours ago, webfact said:

The government removed the debt of Thai Airways <THAI.BK> from the public debt plan as the carrier is no longer a state enterprise, she said.

Remember this throwaway line in a couple of weeks.........

[John CS]

1 hour ago, Flying Saucage said:

I was thinking why oh why do most of these countries in South East Asia create so much ongoining panic and paranoia about Covid, instead of going a more pragmatic but nevertheless safe way like Europe, opening the borders, doing intensive Covid testing, allowing the economy to recover, publishing the real numbers of Covid in a transparent way ...

Maybe there is a bigger master plan behind it. Maybe they willingly ruin the countries. I think the reason might be that most of these countries are governed by dictators or wannabe dictators in fake democracies, corrupt the whole lot. Corrupt people take money. Let's say from China. At the end it's a win-win situation for them and for China. They get some million $ under the table. China gets the bankruptcy assets of the countries industries as a bargain. Big monopolies in the countries might also players in this game. The fate of the people plays no role to them.

 

The word is Oligarchs, inherited Money

similar to USA, Rockefeller,Gates

 

[Scot123]

5 hours ago, heina said:

Head of Bank of Thailand is civilian. Out form Harvard and IMF.

Nothing to do with submarines and uniform.

Yes but the government is and it's the government borrowing and as nearly everyone knows the general runs the show, They have a word for that which starts with "D" sorry "d".

[Ty Hareways]

I wonder if it's on the same repayment plan as my (half thai) tearaway daughter uses...

Daughter: 'Dad can i borrow 500b, i will pay you back'

Dad: 'but you said that last time, and all the times before that'

Daughter: 'yes but this time i will pay you back for sure'.

Non of the repayments have happened..

[sambum]

3 hours ago, geriatrickid said:

Tourism is made up of  domestic tourism and foreign tourism.

According the the Thai government's data, foreign tourists provided 1.93 trillion baht (US $59.98 billion), or 11% of GDP last year.

Although many sectors of the economy are off, agriculture exports, medical supplies and equipment, and financial services are expected to grow and to offset some of the losses in general manufacturing and other services.  Also,  domestic tourism will continue. Many of the Thais who were taking junkets to Hong Kong, Japan and europe are going to opt for staycations.  On that basis, I expect that the borrowing reflects the actual conditions.

 

 

 

 

"Many of the Thais who were taking junkets to Hong Kong, Japan and europe are going to opt for staycations."

 

You are talking about the higher end of the Thai tourist market, and OK, in some cases you are probably right.

 

Unfortunately, many Thais who used to account for a large share of the domestic market just don't have the money to go on holiday as they are out of work, and struggling just to get food on the table and pay the rent, so holidays will be low down on their agenda, even taking into account the huge discounts on offer.

[Aussie Col]

6 hours ago, Mr Meeseeks said:

Overseas tourism is done for the foreseeable. I think we have to acknowledge and accept that.

And with it millions of jobs and 10's of millions of dollars in tourist money

[P100]

8 hours ago, M71 said:

Wow the Central Banksters / IMF have Thailand by the balls as well as every other country on the planet. In debt up to the taxpayers eye balls.

 

Welcome to the new terrorist on the block - no it ain't Bin Laden, no it ain't the Communists - it's COVID-19 ! - the unseen worldwide terrorist you can't see, can't hear, can't touch and can't confront.

 

Stay scared sheeple - and do whatever your told - or we'll come get ya!

 

 

No, the new terrorist is still the extending empire of China...

[connda]

13 hours ago, webfact said:

Thailand's cabinet on Tuesday approved a 214 billion baht ($6.87 billion) borrowing plan for a revenue shortfall in the current fiscal year to September, due to the impacts of the coronavirus pandemic, a government official said.

At a time that according to a recent article on TV, a head banker is calling on the government to pump 1 trillion THB into the economy.  Typical bank.  "Give away the taxpayers money, and make sure we all get a cut."  In the meantime they have to borrow money to keep the lights on. 
Heck of a deal that exists between banks and governments.  A revolving door or mutual back-scratching and flavors at the expense of the public. 
 

[rken2]

They like a governments must keep printing, if they don't the baht will rise in relation to other currencies, so it really does not matter, Its a race to the bottom and substantial inflation, buy gold and silver, it will hold its value or pay the price when all currencies are inflated away. 

[Rockbottom]

High household debt leads to public debt. Thailand's household debt as of 2019 was 78.7% of the GDP.  Any reasonable economist would agree this is unsustainable.

 

This move by the BoT is the result of adverse consequences of high household debt on the economy from local liquidity (easy credit) and the weakening baht. Many Thais live beyond their means. Cannot make payments on existing loans? Just get new loans. If no banks will lend money, go to the street and pay exuberant interest rates from loan sharks. 

 

When indebted households and small businesses try to cut their own debt, they usually reduce their spending and investments which slows down the economy.

 

In the case of Covid's effect on the Thai economy, household debt and the inability to repay loans is directly related to the drop in tourist revenue and the weakening of the baht which has plummeted from being Asia's top-performing currency in 2019 to dead last in January. 

 

This prompted the BoT to spend more to kickstart the economy. More spending requires government bailouts as proposed here ($6.9Bn) which deteriorates public finances and increases public debt. BoT's stimulus effort to provide more small business loans, IMHO is not going to mitigate the legacy that will remain on the books for years to come. That only increases the current disaster of escalating household debt in Thailand. OPEN THE BORDERS!

[Rockbottom]

6 hours ago, AussieinThaiJim said:

This is a drop in the ocean compared to the debt to GDP ratios of a lot of countries post COVID. Have a look at the USA!

The United States recorded a government debt equivalent to 106.90 percent of the country's Gross Domestic Product in 2019.

 

 

•  
• 

GDP ratio data is not an adequate indicator for policy decisions. Switzerland is higher at about 128% of GDP.  But incomes are much higher than Thailand (approx. 9% of Swiss avg. income) which means it's much more sustainable. Thailand's household debt level to GDP rose slightly to 80.1% in the first quarter 2020 (unsustainable). I predict 90% by the end of the year.

 

Soft loans offered to SMEs hit by the outbreak are also likely to push up debt levels.

 

Solve the problem by opening the borders for a foreign currency cash injection with increased testing of tourists and proper mitigation efforts (minus the quarantine).

Edited August 19, 2020 by Rockbottom

[Kleepanna]

22 hours ago, dougiemac52 said:

And to the abyss Thailand is heading. Not even borrowing from Peter to pay Paul. Cannot just keep borrowing  or don't the thai government realise this. The people who will now suffer will be their own population or tourists and we won't put up with increases in everything 

they gonna have to find the money from some where to payit back higher prices, higher taxes, and children that arent born a few years ago will still be paying it back.

[heina]

19 hours ago, rken2 said:

They like a governments must keep printing, if they don't the baht will rise in relation to other currencies, so it really does not matter, Its a race to the bottom and substantial inflation, buy gold and silver, it will hold its value or pay the price when all currencies are inflated away. 

This is Bank of Thailand game. They do prints, they issue debt.

Government borrow from banks. Who Bank of Thailand belongs to?

It is not Thailand, it is not government.

[BigC]

Answer is to borrow from Thakskin lol