Popular Post webfact Posted June 11, 2022 Popular Post Share Posted June 11, 2022 By Erich Parpart Thailand will borrow some 13 billion baht from Japan according to a Royal Gazette announcement on Friday. The announcement said the “emergency support loan” was for the Ministry of Finance to use to mitigate economic and social problems that were caused by the Covid-19 pandemic. The loan was approved by the Cabinet on April 26. The 15-year loan contract with an interest rate of 0.01 per cent per year was made with the Japan International Cooperation Agency (JICA). The loan payment, scheduled for May 20 and November 20 of every year, will be exempted for the first four years. Full story: https://www.thaienquirer.com/40800/thailand-borrows-13-billion-baht-from-japan-at-interest-rate-of-0-01-per-cent/ -- © Copyright Thai Enquirer 2022-06-11 - Cigna offers a range of visa-compliant plans that meet the minimum requirement of medical treatment, including COVID-19, up to THB 3m. For more information on all expat health insurance plans click here. Easiest way to own or rent a car in Thailand - click here to find out more! 1 4 Link to comment Share on other sites More sharing options...
Popular Post jacko45k Posted June 11, 2022 Popular Post Share Posted June 11, 2022 That is a good deal, where can I get some of that! 3 2 Link to comment Share on other sites More sharing options...
Popular Post SooKee Posted June 11, 2022 Popular Post Share Posted June 11, 2022 Mitigate the money pi55ed up the wall on pointless projects more like! ???? 6 Link to comment Share on other sites More sharing options...
Popular Post ThailandRyan Posted June 11, 2022 Popular Post Share Posted June 11, 2022 Mitigate what was stuffed up in their personal bank accounts more likely. Why borrow, I thought the BOT had it all under control. 10 Link to comment Share on other sites More sharing options...
Popular Post Guderian Posted June 11, 2022 Popular Post Share Posted June 11, 2022 A good slice of the 13 billion is no doubt headed for the "emergency support" bank accounts of the fellas in the picture, lol. 7 2 Link to comment Share on other sites More sharing options...
Popular Post doctormann Posted June 11, 2022 Popular Post Share Posted June 11, 2022 Why does country with, allegedly, the largest foreign reserves in the known universe need to borrow money? 13 6 2 Link to comment Share on other sites More sharing options...
ThailandRyan Posted June 11, 2022 Share Posted June 11, 2022 2 minutes ago, doctormann said: Why does country with, allegedly, the largest foreign reserves in the known universe need to borrow money? I know, Right? Link to comment Share on other sites More sharing options...
KhunLA Posted June 11, 2022 Share Posted June 11, 2022 Is that the equivalent of the 'golden parachute' in the corporate world, for those on their way out ???? 2 Link to comment Share on other sites More sharing options...
Popular Post Walker88 Posted June 11, 2022 Popular Post Share Posted June 11, 2022 As should be clear to all now, FX reserves are not all they are cracked up to be. They are not some giant pool of money sitting idle; they are an accounting entry, but already committed to something, so not exactly available. 4 Link to comment Share on other sites More sharing options...
Chelseafan Posted June 11, 2022 Share Posted June 11, 2022 1 hour ago, doctormann said: Why does country with, allegedly, the largest foreign reserves in the known universe need to borrow money? Its the Thai way. Loans are endemic in Thai society and if you can borrow at such a low interest rate when globally banks are putting up there irates AND not have to pay anything for 4 years then why not? Link to comment Share on other sites More sharing options...
ezzra Posted June 11, 2022 Share Posted June 11, 2022 1 hour ago, doctormann said: Why does country with, allegedly, the largest foreign reserves in the known universe need to borrow money? Me think maybe it's NOT a loan, it's a freebie in a guise of a loan so tongues will not wagging that Thailand will recuperates in kind of similar one day no doubts... 1 Link to comment Share on other sites More sharing options...
Popular Post smedly Posted June 11, 2022 Popular Post Share Posted June 11, 2022 1 hour ago, webfact said: The announcement said the “emergency support loan” was for the Ministry of Finance to use to mitigate economic and social problems where did the money from billions upon billions of emergency budgets over the last 2 year GO ??? ..................... where is it ? now you are borrowing from Japan !! why not use some of the foreign reserves you claim to have ? and 13b baht is pocket change in the grand scheme of things I smell a rat 3 Link to comment Share on other sites More sharing options...
smedly Posted June 11, 2022 Share Posted June 11, 2022 1 hour ago, Walker88 said: As should be clear to all now, FX reserves are not all they are cracked up to be. They are not some giant pool of money sitting idle; they are an accounting entry, but already committed to something, so not exactly available. yep, I think you are correct, these so called FX reserves are already collateral for existing borrowing, there suddenly seems to be a huge black financial hole emerging, this is quite shocking but no surprise Link to comment Share on other sites More sharing options...
ThailandRyan Posted June 11, 2022 Share Posted June 11, 2022 14 minutes ago, smedly said: yep, I think you are correct, these so called FX reserves are already collateral for existing borrowing, there suddenly seems to be a huge black financial hole emerging, this is quite shocking but no surprise So time for the USD to go to 40 thb per $1......the US is raising rates but the thais are still sitting at .5....lagging 1 1 Link to comment Share on other sites More sharing options...
blackshadow Posted June 11, 2022 Share Posted June 11, 2022 2 hours ago, jacko45k said: That is a good deal, where can I get some of that! apply to JICA....!!!! Link to comment Share on other sites More sharing options...
StayinThailand2much Posted June 11, 2022 Share Posted June 11, 2022 (edited) 3 hours ago, doctormann said: Why does country with, allegedly, the largest foreign reserves in the known universe need to borrow money? It seems that the Japanese do not pay attention to this questionable scheme. Thailand borrows at a preferential interest rate of only 0.01 per cent per year, while, possibly, investing their own huge reserves at 3 per cent or more. There are other countries that could use such generous loans from JICA. Sri Lanka, Nepal, Laos, and Cambodia come to mind, just in Asia. Edited June 11, 2022 by StayinThailand2much Link to comment Share on other sites More sharing options...
Popular Post bdenner Posted June 11, 2022 Popular Post Share Posted June 11, 2022 With such exciting news I see the "Minister for Watches and all things Corrupt" is still asleep! 2 1 Link to comment Share on other sites More sharing options...
Airalee Posted June 11, 2022 Share Posted June 11, 2022 Ok….so they’re playing the Yen carry trade game? Let’s hope exchange rates work in Thailands favor. 1 Link to comment Share on other sites More sharing options...
rwill Posted June 11, 2022 Share Posted June 11, 2022 5 hours ago, doctormann said: Why does country with, allegedly, the largest foreign reserves in the known universe need to borrow money? Take the money and reinvest it with a higher percentage payout and pocket the difference for one. Link to comment Share on other sites More sharing options...
RichardColeman Posted June 11, 2022 Share Posted June 11, 2022 This loan came on top of the 1.5 trillion baht emergency loans that were made by Prime Minister Prayut Chan-ocha’s administration between 2020 and 2021. 13 billion seems somewhat a pimple on an elephants bottom ! Link to comment Share on other sites More sharing options...
xtrnuno41 Posted June 11, 2022 Share Posted June 11, 2022 Well "my"country at one point could borrow billions in euro and have positive interest. Getting interest, instead of paying ! I was knocked of my chair, they never do this to me. Link to comment Share on other sites More sharing options...
puck2 Posted June 11, 2022 Share Posted June 11, 2022 I will ask Japan to give me this loan with the same conditions Link to comment Share on other sites More sharing options...
chalawaan Posted June 11, 2022 Share Posted June 11, 2022 It borrows its own currency from Japan, of all places. I'm a bit stunned that this even goes on, much less that it happened. If only I was a country, perhaps my bank wouldn't treat me like a count! ???????????? Link to comment Share on other sites More sharing options...
morrobay Posted June 11, 2022 Share Posted June 11, 2022 7 hours ago, smedly said: yep, I think you are correct, these so called FX reserves are already collateral for existing borrowing, there suddenly seems to be a huge black financial hole emerging, this is quite shocking but no surprise Collateral for existing borrowing/loans ?? Then that sounds like these so called reserves are going to be used up to pay back loans. Link to comment Share on other sites More sharing options...
smedly Posted June 11, 2022 Share Posted June 11, 2022 1 hour ago, morrobay said: Collateral for existing borrowing/loans ?? Then that sounds like these so called reserves are going to be used up to pay back loans. well yes - defaulting on loans is a very serious issue - perhaps why they needed a loan from Japan - it has a better look than a default Something really stinks about this and they seem to be keeping it to themselves - wouldn't want to admit the messed up now would they Link to comment Share on other sites More sharing options...
Popular Post dinga Posted June 11, 2022 Popular Post Share Posted June 11, 2022 7 hours ago, Airalee said: Ok….so they’re playing the Yen carry trade game? Let’s hope exchange rates work in Thailands favor. INDEED - this is the issue. The minuscule interest rate is (intentionally) extremely misleading. You can be sure the Loan is in YEN (how can it possibly be in Baht....) - meaning Thailand is at the mercy of the movement in FX Rates every time payment is to be made. I am reminded of when Swiss Franc Home Loans were being pedaled in Australia at similarly ridiculously low interest rates - those who fell for the trap were destroyed by unfavourable FX movements. 2 1 Link to comment Share on other sites More sharing options...
metisdead Posted June 11, 2022 Share Posted June 11, 2022 Some off topic posts have been removed. Link to comment Share on other sites More sharing options...
Airalee Posted June 11, 2022 Share Posted June 11, 2022 1 hour ago, dinga said: INDEED - this is the issue. The minuscule interest rate is (intentionally) extremely misleading. You can be sure the Loan is in YEN (how can it possibly be in Baht....) - meaning Thailand is at the mercy of the movement in FX Rates every time payment is to be made. I am reminded of when Swiss Franc Home Loans were being pedaled in Australia at similarly ridiculously low interest rates - those who fell for the trap were destroyed by unfavourable FX movements. Yeah, it’s definitely a potential “trap”. They did the same thing with the housing market in the US with 5 year (if I remember correctly…it certainly wasn’t a typical 15 or 30 year mortgage) Yen loans back in 2007. The US$ was 120 yen at the time. 5 years later (2012) it was around 80 Yen to the $. I wonder how many people fell for it. Had no idea that they did the same thing in Australia…interesting to know. Thanks. Link to comment Share on other sites More sharing options...
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