Thailand’s government pushes for 500-billion-baht loan to boost economy

[webfact]

Deputy Finance Minister Julapun Amornvivat underlined the government’s prerogative to deem the current economy as crisis-ridden, a pivotal aspect for sanctioning the 500-billion-baht loan bill to propel its digital wallet disbursement scheme.

 

According to him, the definition of an economic crisis is subjective, hinging on individual perception. Nonetheless, the government’s assessment paints the picture of an economy in dire need of swift stimulus measures to avert further decline.

 

Julapun emphasised that the state of the economy, whether in crisis or not, would unlikely impact the affluent. However, the less fortunate demographic perceives the economy to be underperforming and in a state of crisis. He attributed Thailand’s economic slump to the skyrocketing household debt, which currently stands at 90% of GDP. This has ramifications on domestic consumption, savings, and investment, leading to a stagnant growth rate over the past two decades, reported Bangkok Post.

 

The concern of most individuals revolves around maintaining their existence, securing funds for debt repayment. Simultaneously, the private sector is preoccupied with cost reduction to enhance debt servicing ability.

 

by Alex Morgan

Photo courtesy of iStock

 

Full story: The Thaiger 2024-01-30

 

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[bamnutsak]

5 minutes ago, webfact said:

Deputy Finance Minister Julapun Amornvivat underlined the government’s prerogative to deem the current economy as crisis-ridden

 

This should instill confidence.

 

 

[bokningar]

7 minutes ago, webfact said:

500-billion-baht

Must be hard for all greedy fingers to stay away from such a big amount to nibble from

[ikke1959]

Now I understand ... The bank are urged to lower the interest rates, but the government wants to borrow 500 billion ...all to improve the economy.. So less interest to pay on the loan of the Government, and more debt to the country that will throw it into the deep without knowing how it ends, but probably a worst scenario for the economy

[Guderian]

5 hours ago, webfact said:

the 500-billion-baht loan bill to propel its digital wallet disbursement scheme.

 

 

I thought it had already been reduced to 300 billion Baht. Anyway, after the politicians and administrators take their share, the Thai public will be lucky to see 100 billion Baht.

[hotchilli]

5 hours ago, webfact said:

According to him, the definition of an economic crisis is subjective, hinging on individual perception. Nonetheless, the government’s assessment paints the picture of an economy in dire need of swift stimulus measures to avert further decline.

Thailand would never admit to an economic crisis.

[jippytum]

They want to bancrupt the country to pay bribes to the voters 

[Stocky]

5 hours ago, webfact said:

According to him, the definition of an economic crisis is subjective, hinging on individual perception. Nonetheless, the government’s assessment paints the picture of an economy in dire need of swift stimulus measures to avert further decline.

The economic crisis is a government wishing to spend money it doesn't have. Better cut military spending to fund the stimulus package.

[stargrazer9889]

Why is Thailand pushing this digital wallet?

i  I do not understand.

 

[soalbundy]

1 hour ago, Stocky said:

The economic crisis is a government wishing to spend money it doesn't have. Better cut military spending to fund the stimulus package.

I agree, they should follow the example set by the West who have magnificent economies.

[Stocky]

2 minutes ago, soalbundy said:

I agree, they should follow the example set by the West who have magnificent economies.

The west is no example to follow! Thailand needs to do what's right for Thailand. 

[Photoguy21]

24 minutes ago, stargrazer9889 said:

Why is Thailand pushing this digital wallet?

i  I do not understand.

 

No one does understand but apparently it is the flavour of the year.

[soalbundy]

Just now, Stocky said:

The west is no example to follow! Thailand needs to do what's right for Thailand. 

Precisely. The West, especially America is saddled with so much debt that the interest paid takes a large part of the GDP, on the other hand Thailand has a low debt to GDP at the moment, they could afford it to pump the economy to tie them over until times improve; The danger is if times don't improve for a long time (likely) they will need even more debt to continue the cycle, however if they don't encourage consumption they will have a stagnating economy, like the rest of the world they are between a rock and a hard place. The West has already run out of economic ammunition to fight the coming world synchronized recession, Thailand is in a better situation in this regard and should act before things get too bad and hope the world has an economic miracle. Nothing wrong with sensible debt ie. debt that will eventually generate income like spending on infrastructure, education, investing in home grown manufacturing etc. Helicopter money as the West has done is short lived, just kicking the can down the road.

[Stocky]

1 hour ago, soalbundy said:

Helicopter money as the West has done is short lived, just kicking the can down the road.

I don't disagree with you, but Thailand's military still pull the strings of government, for helicopter money, fighter plane money, submarine money, submarine engine money, landing craft money.........................

 

For what? Who are Thailand ever going to go to war with?

[HappyExpat57]

2 hours ago, stargrazer9889 said:

Why is Thailand pushing this digital wallet?

i  I do not understand.

 

 

In theory, if they could get the population away from cash and into a digital monetary system then they could monitor everything, and in a society not fraught with corruption it could work quite well. In theory.

 

However, T.I.T.S.

[johng]

2 hours ago, stargrazer9889 said:

Why is Thailand pushing this digital wallet?

i  I do not understand.

 

Part of the WEF's panopticon plan

ESG's,carbon tax,15 minute cities

"you will own nothing and be happy"

 

PS you will eat the bugs too !!

[johng]

18 minutes ago, HappyExpat57 said:

then they could monitor everything, and in a society not fraught with corruption it could work quite well

Work quite well for who ?

 

They could monitor everything !  as if that would be a good thing ?

I'd say it was a scary dystopian nightmare. 

 

[HappyExpat57]

2 minutes ago, johng said:

Work quite well for who ?

 

They could monitor everything !  as if that would be a good thing ?

I'd say it was a scary dystopian nightmare. 

 

C'mon now, my post was only a few sentences long and you seem to have skipped over the most important part, so here you are again: "in a society not fraught with corruption"

[Trippy]

Borrow money just to give it away, sounds like some gamblers I know.

[johng]

@HappyExpat57

The most important part is that everyone realise the implications of a CBDC...corruption is part of human nature.

 

[brianthainess]

Who in their right mind would lend this Government 500 BILLION Baht?  How much is that in USD 140 million?

[puck2]

10 hours ago, bamnutsak said:

 

This should instill confidence.

 

 

 

Mee to. I don't understand it, but the corrupt officials in  the government, in  the ........ the list goes on. Be sure, they understand it how it works!

[Trippy]

45 minutes ago, brianthainess said:

Who in their right mind would lend this Government 500 BILLION Baht?  How much is that in USD 140 million?

More like 14 Billion USD. But you have a point either way.

[Gknrd]

Odd how TAT and the social media runs 180 degrees to the actual truth of the economy in Thailand.

[worgeordie]

It's just a populist policy , vote buying ,will maybe give the economy ( CP and their ilk )

a boost , but short lived , and how long and where from will they get the money to repay

the debt, 

 

 

regards Worgeordie

[proton]

2 hours ago, HappyExpat57 said:

 

In theory, if they could get the population away from cash and into a digital monetary system then they could monitor everything, and in a society not fraught with corruption it could work quite well. In theory.

 

However, T.I.T.S.

 God no, stood behind people today in Tops and Big C who could not get the Q code thing right to pay, one just walked off in the end leaving the goods behind

[Elkski]

So the hiso want the plebs to have nore money to spend.  

Maybe with digital spending  they could track money so tax cheating , that is rampant from my understanding, could be reduced.  But also banks are jonesing on some % they hope to skim.   Will it lower the household debt?  No way. 

[kickstart]

6 hours ago, hotchilli said:

Thailand would never admit to an economic crisis.

They back in 1997, they had no choice but to go cap-in -hand to the World Bank and the IMF, that was due to 2 Thai PM's who thought they could just spend all the money, then it economy was growing at 7% plus a year.

Now, this new guy thinks he can just spend, the 500 billon D-Wallet, plus other spending, as said in 97 the economy was growing well, now with a forecast of 1.8% GDP growth, a slow action train crash in the making.

[MrJ2U]

12 hours ago, webfact said:

government’s prerogative

 

These are the same dumbasses from the junta who are still in charge, running the countries economy into the ground.

 

 

[lordgrinz]

So you borrow 500 billion baht, then give it away, exactly who calculated the return on investment?! It will return nothing on the original investment, other than vote buying. Vote buying is illegal in Thailand, right?