Jonathan Fairfield Posted August 25, 2021 Share Posted August 25, 2021 FILE PHOTO: Thai finance minister Arkhom Termpittayapaisith speaks during an interview with Reuters in Bangkok, Thailand January 21, 2021. REUTERS/Chalinee Thirasupa By Orathai Sriring and Satawasin Staporncharnchai BANGKOK (Reuters) - Thailand's fiscal position remains strong and it can raise its public debt ceiling if necessary, the country's finance minister said on Wednesday, as the Southeast Asian nation deals with its worst COVID-19 outbreak to date. The country's outbreak and stricter containment measures have hit economic activity while tourism is still struggling. Despite significant borrowing to fund the outbreak response, the country's ratio of debt to gross domestic product (GDP) was still low compared to peers at 56%, and expected to remain below its 60% ceiling at the end of this fiscal year to September, Arkhom Termpittayapaisith told a business conference. "If there is a need to increase our debt ceiling, the fiscal policy committee... can revisit and raise this threshold," he said. The government will work hard to stimulate the economy, especially by gradually reopening the country, to keep its GDP growth target of 4-5% next year, he said. For 2021, the ministry forecast GDP growth of 1.3%, while the central bank predicts 0.7%. Last year, the economy contracted 6.1%, the deepest fall in over two decades. The government has introduced various stimulus and relief measures since the pandemic with a total of 1.5 trillion baht ($45.86 billion) borrowing, of which, 500 billion baht was approved this year. The government has room available to engage in more "stimulus firepower" if necessary with much lower costs, Bank of Thailand Governor Sethaput Suthiwartnarueput told the conference. He recently recommended that the government borrow a further 1 trillion baht. The economy has been quite resilient to shocks with limited downside risks and is likely to be much more resilient to a possible 'taper tantrum' than in many other countries due to its strong external position and banking sector, he said, referring to the impact of the withdrawal of U.S. stimulus. The BOT will ensure financial conditions are not a constraint on the economic recovery, he added, as the BOT's policy rate has been unchanged at a record low of 0.50% since a cut in May 2020. ($1 = 32.71 baht) (Reporting by Orathai Sriring and Satawasin Staporncharnchai; Editing by Ed Davies) -- © Copyright Reuters 2021-08-25 - Whatever you're going through, the Samaritans are here for you - Follow ASEAN NOW on LINE for breaking COVID-19 updates Link to comment Share on other sites More sharing options...
Scrotobike Posted August 25, 2021 Share Posted August 25, 2021 A bigger trough 2 Link to comment Share on other sites More sharing options...
Gottfrid Posted August 25, 2021 Share Posted August 25, 2021 1 hour ago, Jonathan Fairfield said: Thailand's fiscal position remains strong and it can raise its public debt ceiling if necessary Read this! It comes from a person they call finance minister in a SEA country. ???? 1 Link to comment Share on other sites More sharing options...
BKKTRAVELER Posted August 25, 2021 Share Posted August 25, 2021 This is coming from the current minister of finance, which was the minister of transport as of last year. Don't miss the train people! Link to comment Share on other sites More sharing options...
Venom Posted August 26, 2021 Share Posted August 26, 2021 Where's all the money going? Link to comment Share on other sites More sharing options...
MrJ2U Posted August 26, 2021 Share Posted August 26, 2021 (edited) There's nothing these men can't do. Raise the debt ceiling, disenfranchise voters, promote convicted heroine dealers, etc There magical. Edited August 26, 2021 by MrJ2U 1 Link to comment Share on other sites More sharing options...
Rampant Rabbit Posted August 26, 2021 Share Posted August 26, 2021 Could always borrow from China, theyd be more than happy to help themselves out 1 Link to comment Share on other sites More sharing options...
Rampant Rabbit Posted August 26, 2021 Share Posted August 26, 2021 23 minutes ago, Venom said: Where's all the money going? ask the Police Colonel Link to comment Share on other sites More sharing options...
Rampant Rabbit Posted August 26, 2021 Share Posted August 26, 2021 23 minutes ago, Venom said: Where's all the money going? Most wityh any sense will try to get it out of Thailand for when it goes tits up and they can run off to a real country 2 Link to comment Share on other sites More sharing options...
Sydebolle Posted August 26, 2021 Share Posted August 26, 2021 Arkhom Termpittayapaisith, previously in transport (until Newin Chidchob's brother Saksayan took that ministry to new spending heights!) and now in charge of finances ....... well, well. What this country needs last is raising public debt ceiling. Who on earth can pay all this back after the rats have left the sinking ship? If you risk running out of cash, why then: buying absolutely unnecessary submarines, tanks and aircraft? pouring more billions into a dead horse like Thai Airways International (with a staggering USD 10 billion debt load), whichever way you whip that dead horse, it will never fly in the black again. Raising debts is utter bo11ocks. The currency is on free fall going down the tube and tourism, with all due respect, is not "struggeling", nor on life support - but completely dead. All this is due to the devastating incompetence, conflicts of interests by most ministers and their ministries and the present rulers motto is best described with "take, while the taking is good". The mess these "politicians" will leave behind shall be haunting the next generation; latter ill prepared due to a medieval authoritarian "education" system based on "Phuyai" principles of treating teachers as semi-divine preaching stuff from completely incompetent schooling material. Latter's impact is dampened, as home schooling takes place with a fraction of the kids, the rest is sitting at home, getting fat and playing on iPhones and Smart tablets. The writing is on the wall and people like Arkhom Termpittayapaisith should definitely know better than raising the debt threshold, in the interest of the generation of his children and grandkids - me thinks! Link to comment Share on other sites More sharing options...
smutcakes Posted August 26, 2021 Share Posted August 26, 2021 Was it the PDRC who accused the Yingluck administration of bankrupting the country and in NO WAY could the debt ceiling be increased above 60%? Link to comment Share on other sites More sharing options...
Cake Monster Posted August 26, 2021 Share Posted August 26, 2021 14 hours ago, Jonathan Fairfield said: Despite significant borrowing to fund the outbreak response, the country's ratio of debt to gross domestic product (GDP) was still low compared to peers at 56%, and expected to remain below its 60% ceiling at the end of this fiscal year to September, Arkhom Termpittayapaisith told a business conference. I thought that the ceiling had already been reached on borrowing after I read about a Month or so ago that it had already reached something like 59.8 % of GDP after the last borrowing. Maybe I am wrong. Link to comment Share on other sites More sharing options...
RubbaJohnny Posted August 26, 2021 Share Posted August 26, 2021 8 hours ago, Sydebolle said: The currency is on free fall going down the tube While I concur with some of your reflections on the corrupt incompetence in some matter. However if there is one things Thais really comprehend in a largely godless society is money and debt. Let me share my view in my 2nd millenia here e1 The praa the peasants teh have nots zero ccapital, savings, possibly a mobile phone, honda wave their debt ltd by creditworthiness even to village tontine theor net contribution to GDP and exports minimal other than cheapish labour which is some of the most expensive in ASEAN after Bruei /Singapore micro states 2 The lower mmiddle class, self educated thrift hard working These and teh goverment payroll teachers nurses etc, Secure jobs so won't make waves, pensions health benfits offset slow low income growth. 3 The Profitabel SMEs teh Tcheow Cahi entrepreneurs and teh liek who actually understand hard work a profit and loss accoun and risk management. 4 Teh Owners as n every counrty largely shielded from hardshoips loss a $million or 10 won't change their lifestyle power or influence. Like centrally planned economies China etc they need really not fear any challenge from courts, polls or media. If teh baht is plummetting not sure what that sats about greenback which can be printed with impunity QE ad infinitum I normally only check on padyas but this week fell around 3% against the baht. However apart from odd exceeption has been in 29-34 range for years. The Tha economy and torism have been hit so has everywhere. Good luck keep safe, I think the baht rate is of little significance to those who live here on a rwsonable pension If it does fall can only help exports and tourism in the long run. As for Thai Airways fiasco , reasons creditors push teh can down teh road many Thai pensions and other investors have a lot to lose ,Hope well but double check. For lessons on how to get a long term loan Hopewell Holding German investor awarded 29 million Euros in claim against ... https://www.iisd.org › itn › 2010/05/11 › german-inves... 11 May 2010 — Walter Bau, a German company currently in liquidation, invested in a joint venture to construct and operate a tollway from Bangkok Link to comment Share on other sites More sharing options...
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