Thailand Wants Us$1 Billion From Asian Development Bank, World Bank

[george]

Thailand wants US$1 billion from Asian Development Bank, World Bank

BANGKOK: -- Finance Minister Suchart Thada-Thamrongvech on Tuesday announced that the ministry plans to seek loans for US$1billion -- Bt 35 billion -- from the World Bank and the Asian Development Bank to finance construction of Thailand's basic infrastructure projects.

He said the application for the loans is part of an international borrowing plan to support implementation of 13 state-supported projects initiated to help boost economic growth.

Should the Manila-based ADB be reluctant to lend or slow the loan extension, the ministry would seek the entire loan amount from the World Bank with a 15-24 year term and a grace period of 3-6 years and at a London Interbank Offered Rate (LIBOR) of 0.02-0.20 per cent.

LIBOR, a daily reference rate, is somewhat comparable to the US Federal funds rate.

A partial amount of the loans would be set aside to finance construction of six mega-projects such as the dark green- and light green- electric rail routes and dual-track railways.

Once the borrowed funds are injected into the system, Dr. Suchart said, they would help boost liquidity in the economic system and ease the impacts of the export slump due to the global financial crisis.

The finance minister added that the development projects must be implemented in conjunction with the approved national development strategy, offer high returns to the economy and society, and win approval from Parliament.

-- TNA 2008-11-19

[Scott]

I wonder if these institutions have something in place to prevent this money from ending up in the pockets of the rich.

[Chang_paarp]

I wonder if these institutions have something in place to prevent this money from ending up in the pockets of the rich.

That is how it meant to work in theory.

[alex_aka_P]

the ministry plans to seek loans for US$1billion -- Bt 35 billion

Very good money... for the seekers of course, not for TH...

[animatic]

I wonder if these institutions have something in place to prevent this money from ending up in the pockets of the rich.

:D That is how it meant to work in theory.

Ya think!!

Mega projects is code for graft allocation projects

with something to show for it 5 years behind schedule

and 150% over budget.

So they don't have enough REVENUE here, they must borrow long term debt

to get these rush-rush mega-projects happening BEFORE the PPP is dissolved.

[geriatrickid]

Sort of like writing to Saint Nick isn't it?

[JimmyTheMook]

I wonder where all the Tsunami funds went to ?

Pockets got so fat the government has to request people stop sending donations.

[jayjayjayjay]

I wonder if these institutions have something in place to prevent this money from ending up in the pockets of the rich.

That is how it meant to work in theory.

Ya think!!

Mega projects is code for graft allocation projects

with something to show for it 5 years behind schedule

and 150% over budget.

So they don't have enough REVENUE here, they must borrow long term debt

to get these rush-rush mega-projects happening BEFORE the PPP is dissolved.

Well look at the Hopewell project, that's what you get when you want Samak and Chuan to handle megaprojects. At least Thaksin got some built! We call that progress.

[Thai at Heart]

Obviously they got some tips in how to get really rich very fast from their counterparts at the recent ASEAN get together.

[sriracha john]

Finance Minister Suchart Thada-Thamrongvech on Tuesday announced that the ministry plans to seek loans for US$1billion -- 35 Billion Baht -- from the World Bank and the Asian Development Bank

I wonder if these institutions have something in place to prevent this money from ending up in the pockets of the rich.

Lots of expenses to be paid, what with PPP's responsibility for paying 3 Billion to the Election Commission for the cost of a new election after their dissolution and then the new Party's actual expense of the election itself.... more billions.

Suchart just so happens to be the Party Leader of the new TRT/PPP/PTP line of nominees.... although he's stepping down so Thaksin's little sister can be become the new Prime Minister. All these things cost lots of money... and the TRT/PPP/PTP are in a bind... what with 76 Billion Baht frozen...

Puea Thai Chief set to step aside

Suchart Thadathamrongvech will step down as Puea Thai Party (PTP) Leader to prepare for the dissolution of the PPP and a new election, sources said yesterday.

PPP MP for Roi Et Sakda Khongpet said voters preferred any member of the Shinawatra family to be the new PTP Leader, whether it be retired General Chaisit Shinawatra, a cousin of convicted PM Thaksin, or Thaksin's younger sister, Yingluck.

http://www.thaivisa.com/forum/index.php?s=...t&p=2340445

[12DrinkMore]

Please can I have a bit or rather a LOT at that incredible interest rate?

0.02-0.20 per cent?

I can't believe anybody will lend money at that rate fixed over decades.

[torrenova]

Please can I have a bit or rather a LOT at that incredible interest rate?

0.02-0.20 per cent?

I can't believe anybody will lend money at that rate fixed over decades.

The rate will be LIBOR plus a spread which I think is what you are quoting. If interest is paid every 6 months then they will have an interest rate set perhaps 2 days prior to interest payments which is standard for contracts such as swaps and other derivatives. The loan would be floating though, perhaps at 6 month LIBOR ?

Don't really see the need for the payment holiday though, nor in fact the loan itself. Presumably interest would be rolled up during the holiday.

At the moment, it makes sense to borrow outside the Thai market but these lenders should incorporate terms demanding immediate repayment if one cent is robbed by the usual suspects.

[Scott]

Would building a new Gov't House be considered a mega project? Would an international banking institution lend money for it?

My concern isn't quite so much what Thailand does/doesn't do, I am really hoping these banks are acting in a responsible manner and that IF they lend money, it is actually needed, the projects are good and desirable and that there is a monitoring of the funds to ensure the money goes where it's meant to go.

(Well, I guess that new optimism pill really does work!)

[Ricardo]

Please can I have a bit or rather a LOT at that incredible interest rate?

0.02-0.20 per cent?

I can't believe anybody will lend money at that rate fixed over decades.

The rate will be LIBOR plus a spread which I think is what you are quoting. If interest is paid every 6 months then they will have an interest rate set perhaps 2 days prior to interest payments which is standard for contracts such as swaps and other derivatives. The loan would be floating though, perhaps at 6 month LIBOR ?

Don't really see the need for the payment holiday though, nor in fact the loan itself. Presumably interest would be rolled up during the holiday.

At the moment, it makes sense to borrow outside the Thai market but these lenders should incorporate terms demanding immediate repayment if one cent is robbed by the usual suspects.

Presumably the payment-holiday is to allow time for the lender(s) to forget about their loans to permit the proposed investments to start generating the returns with which to fund the interest & re-payments ?

Is there a Thai holiday, to celebrate this anticipated event, the freezing-over of hel_l ?

[Bagwan]

Somebody help me please. What was it the Tacky had to say about the World Bank after they bailed LoS out? If, God forbid, that I was President of the World Bank I would be sending a telegram (remember those?) saying 'Go forth and multiply'.

[dotcom]

What he said was: "These damned foreigners are drinking the blood of Thai patriots".

[plachon]

Somebody help me please. What was it the Tacky had to say about the World Bank after they bailed LoS out? If, God forbid, that I was President of the World Bank I would be sending a telegram (remember those?) saying 'Go forth and multiply'.

Or are you confusing it with him saying the "UN is not my father", when the UN Human Rights Commssion sent a team to investigate both the state-led killings and mass disappearances in the South,as well as the 2,700 + EJK's encouraged by Thaksin's policies in the Drugs War, who wrote a rather damning report about Thaksin's government.

And more likely you are confusing the IMF with the WB, which are two rather different beasts in terms of "bailing out" economies, but from the same ideological origins. One creates a crisis, while the other compounds it, when the country is on its knees as a result of the other's bad projects.

[animatic]

At the time Thaksin's pronouncements were rather swamped out by those of Mathahir Mohammed.

He had veritable drummonds of bilious merde to say.

Edited November 23, 2008 by animatic

[Bagwan]

And more likely you are confusing the IMF with the WB, which are two rather different beasts in terms of "bailing out" economies, but from the same ideological origins. One creates a crisis, while the other compounds it, when the country is on its knees as a result of the other's bad projects.

Ah. Just so. My memory isn't what it was. Thank you for correcting me.

I notice that Mugabe is currently crossing swords with the UN, or for the pedantic, a former Secretary General. Hmm. Two warped minds think as one.