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Post-Flood Funding Key Task For New Finance Minister Kittiratt: Thailand


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Post-flood funding key task for Kittiratt

WICHIT CHAITRONG,

PETCHANET PRATRUANGKRAI,

WATCHARAPONG THONGRUNG

THE NATION

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The main job of Kittiratt Na-Ranong in his new post as finance minister is to secure funding for post-flood reconstruction and other investment projects.

When he was deputy prime minister and commerce minister, Kittiratt worked closely with Virabongsa Ramangkura, chairman of the strategic committee for reconstruction and future development.

He totally supported Virabongsa's move to make use of the country's international reserves to pay off the Bt1.14-trillion debt of the Financial Institutions Development Fund (FIDF), despite strong opposition from Finance Minister Thirachai Phuvanatnaranubala and the central bank.

The two sides finally reached a compromise when Kittiratt agreed to delete a controversial clause out of the emergency decree.

The general public also disapproved of the clause that gave the Cabinet a greater role in asset management of the central bank. Now, the central bank has agreed to amortise the FIDF debt with its profits from market operations and from higher premiums its plans to collect from commercial banks.

Virabongsa yesterday suggested that Kittiratt should sell the government's stakes in PTT and Thai Airways International in order to cut public debt, as the two state enterprises have a combined debt of about Bt900 billion.

Lower public debt would give the government more room to borrow to finance post-flood recovery projects costing about Bt350 billion. The government also needs to run a budget deficit for the next fiscal year to spend more on infrastructure projects.

Kittiratt said the reshuffle would benefit the country and increase the work efficiency of the government.

"I am confident about the premier's decision. There will be some new ministers, while some ministers will have to take more serious jobs," he said.

Deputy Finance Minister Boonsong Teriyapirom will replace Kittiratt at the Commerce Ministry. He has a close relationship with Yaowapa Wongsawat, Thaksin's sister and wife of former prime minister Somchai Wongsawat.

The permanent secretary of the Justice and Labour ministries during the Thaksin Shinawatra administration, Charupong Ruangsuwan, has been named as transport minister.

Charupong, 66, has been a member of the Pheu Thai Party since it was called the People Power Party after his retirement as party secretary-general.

His background in the two ministries will allow him to help the party with budget allocations. The Transport Ministry is handling many mega-projects that are pending Cabinet approval.

Compared with ousted transport minister Sukampol Suwannathat, who party members found hard to reach, party operations now should run more smoothly.

Charupong is also believed to be better able to advance the party's populist policies for sealed roads and other infrastructure projects countrywide.

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-- The Nation 2012-01-18

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