Government Insists ฿500bn Loan to Deal with COVID-19 Crisis does not Exceed Public Debt Ceiling

[webfact]

 

By Subhabhong Rarueysong

   

BANGKOK (NNT) - Thailand’s Finance Minister Arkhom Termpittayapaisith has defended the executive decree to borrow 500 billion baht to combat the public health crisis, insisting the loan will not exceed the public debt ceiling.

 

He told parliament that the government had sourced funding under the law to fight COVID-19, but it was still not enough to deal with new waves of the pandemic, adding that the government will maintain financial discipline, cost-effectiveness and transparency.

The minister said the government has not been able to collect much tax revenue during the 2021 fiscal year, as a result of businesses losing income or closing as a result of the pandemic.

 

Mr. Arkhom explained that the decree allows the Finance Ministry to borrow 500 billion baht, but loan contracts must be signed by Sept 30 next year. About 30 billion baht has been earmarked to buy medical supplies, drugs, vaccines and research and development of vaccines.

 

-- © Copyright NNT 2021-06-11

 

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[sammieuk1]

Who is the lender Prawit? or his half brother ????

Edited June 10, 2021 by sammieuk1

[ukrules]

In practice, there is no ceiling...

[Venom]

Covid has been good to some.. ????

[ThailandRyan]

The piggy bank is full again, all praise the brave Government of Prayut for feeding the needy, the poor, the disenfranchised, the unemployed, and those whose business has gone to the creditors.

[hotchilli]

4 hours ago, webfact said:

but it was still not enough to deal with new waves of the pandemic, adding that the government will maintain financial discipline, cost-effectiveness and transparency.

I swear to god I just saw a pig fly.

[jerrymahoney]

18 minutes ago, ThailandRyan said:

The piggy bank is full again, all praise the brave Government of Prayut for feeding the needy, the poor, the disenfranchised, the unemployed, and those whose business has gone to the creditors.

Wow -- I sure didn't know when I joined ThaiVisa that I would privy to such biting political commentary.

[chalawaan]

Interviewer: "So it's true China nailed your head to the taable?"

 

Government Spin Dr.  "Yeah, but I had to insist!"

[huangnon]

Where  / who are they borrowing from?

[Cake Monster]

1 hour ago, huangnon said:

Where  / who are they borrowing from?

I guess they will borrow from the World Bank or IMF.

This is the reason for having good credit ratings as the borrowing rates are better with a better credit rating.

Or, they may borrow from the Mother Nation , but the price to pay will be huge

 

[huangnon]

49 minutes ago, Cake Monster said:

I guess they will borrow from the World Bank or IMF.

This is the reason for having good credit ratings as the borrowing rates are better with a better credit rating.

Or, they may borrow from the Mother Nation , but the price to pay will be huge

 

 

Thought so. No doubt these profligate morons will have to kowtow to all sorts of "trade deals" and conditions imposed by the globalist bankers.

Good opinion piece from the BP earlier this week:

Quote

A major lasting damage Prime Minister Prayut Chan-o-cha will eventually leave behind is his government's co-optation and capture of autonomous agencies that used to safeguard and uphold Thailand's macroeconomic well-being and political level-playing field.

As these monitoring and watchdog agencies become inert and ineffective, the Prayut government has had a field day running up Thailand's debt burden no end and running the country into the ground in the process, leaving future generations to pick up the pieces and pay for the runaway debt.

Thailand's irresponsible runaway debt

[Dogmatix]

They are building up massive debt for future generations with little or no benefit to the Thai people.  This finance minister, a retired civil servant, is nothing by a damp rag.

[Dogmatix]

9 hours ago, huangnon said:

Where  / who are they borrowing from?

They don't say where will borrow it from.  But if they borrow domestically it is a zero sum game.  Savers withdraw from Thai banks, which already have a shortage of liquidity, to buy the government bonds.  This risks pushing up interest rates and stalling the economy.  Judging by foreign outflows from the Thai bond market, borrowing from overseas might not be easy either.