Thailand Mulls 400-million-dollar Loan From China

[Jai Dee]

Thailand mulls 400-million-dollar loan from China

Bangkok - Thailand plans to request a 400-million-dollar loan from the China Exim Bank as part of its efforts to stimulate the economy which expected to shrink at least 3 per cent this year, media reports and officials said Wednesday.

The loan request is to be submitted to Chinese Foreign Minister Yang Jieshi, who was scheduled to meet Wednesday with Thai Prime Minister Abhisit Vejjajiva and his Thai counterpart Kasit Piromya, The Nation newspaper reported.

'This loan has been under discussion for some time, since Surayud Chulanont was prime minister in 2007,' Thai Foreign Ministry deputy spokesman Thani Thongphakdi said. 'But the details had to be worked out.'

The loan would be in addition to the 70 billion baht (2 billion dollars) in loans Thailand is seeking from international institutions such as the World Bank, the Asian Development Bank and the Japan International Cooperation Agency.

Finance Minister Korn Chatikavaij warned earlier this week that Thailand's gross domestic product (GDP) could contract by 8 to 9 per cent if the government didn't launch its stimulus packages.

Yang was also scheduled to meet with Privy Council President Prem Tinsulanonda Wednesday afternoon.

Thailand is reportedly hoping to persuade China to hasten an extradition treaty between the kingdom and the Chinese territory Hong Kong to facilitate efforts to silence ousted Thai premier Thaksin Shinawatra.

Thaksin, who has been living in self-exile since August 2008, has used Hong Kong on several occasions to launch video or phone-in messages to his political supporters in Thailand.

In his latest phone-in message on Sunday he accused members of the privy council including Surayud of conspiring with the military to topple him in the September 19, 2006 coup.

Surayud, who was appointed prime minister after the coup, denied the accusation on Monday.

Source: DPA - 25 March 2009

[DaleBlue]

Thailand mulls 400-million-dollar loan from China

Source: DPA - 25 March 2009

More loans for the next government to make repayments.

Good luck to TRT/PPP/PT or what ever Thaksin proxies call themselves then.

[Rtwo]

Thailand mulls 400-million-dollar loan from China

Source: DPA - 25 March 2009

More loans for the next government to make repayments.

Good luck to TRT/PPP/PT or what ever Thaksin proxies call themselves then.

They'll be expecting more than just cash though, you can guarantee that. First Burma, then Laos and now Thailand but I suppose it was inevitable.

[Jai Dee]

Thai PM denies report on $400 mln loan from China

Thai Prime Minister Abhisit Vejjajiva on Wednesday denied a report that the government was looking for a $400 million loan from China to help the economy.

Asked by reporters whether the government was seeking such a loan, he replied: "No, we aren't. Today our borrowing sources are only the World Bank, the ADB and JICA."

The government is in the process of borrowing $1 billion from the World Bank and $500 million each from the Asian Development Bank and Japan International Cooperation Agency.

The lending was approved by parliament late on Tuesday, so the government can now formally begin talks on the seven-to-ten-year loans.

The final terms of the loans will also have to be approved by the cabinet and parliament. The government has said it expected to receive the funds in the third quarter of the year.

The Nation newspaper reported on Wednesday that the Finance Ministry was to seek a $400 million loan from the Export-Import Bank of China to help the economy with further stimulus measures.

It said the request would be submitted to the bank via Chinese Foreign Minister Yang Jiechi, who is in Thailand until Thursday.

Abhisit said he would meet with Yang later on Wednesday but would only discuss general economic cooperation and preparations for a regional summit in Thailand in April.

Like other governments around the world, Thailand has launched stimulus measures to limit the impact of the economic slowdown. Abhisit has also spoken recently about huge infrastructure projects and ministers will discuss this on Wednesday.

Source: Reuters - 25 March 2009

[peter991]

Lesson 1: Loans have to be repaid with interest.

Lesson 2: It's no good having a great product (Thailand) if the rest of the world is in deep recession / depression and they can't afford to either visit or buy your produce.

Lesson 3: How will the money be spent?

Peter