PM insists Finance Minister Kittiratt stay on as economic chief

By English News

BANGKOK, Feb 5 – Prime Minister Yingluck Shinawatra stood firm today that her deputy Kittiratt Na-Ranong must remain head of the government’s economic team despite a hiccup regarding two state-operated commercial banks and the rocketing inflow of foreign capital into Thailand.

She made the statement in response to a question by reporters on whether Mr Kittiratt, deputy prime minister and finance mininewsjsster, will be ousted from the government’s economic think tank in an imminent cabinet reshuffle given the problem of escalating non-performing loans (NPL) at the SME Bank and the Islamic Bank of Thailand (IBank). Both banks were instructed to submit their rehabilitation plans to the Finance Ministry.

Mr Kittiratt said a resolution of their NPLs will not be reached soon as the Finance Ministry must study guidelines on solutions to the problem as recommended by the World Bank.

He admitted that he was concerned with the loan defaults of the two banks but said there are several alternatives in solving the problem including capital increase and separation of non-performing and performing loans so that management of the performing loans continues.

Merging with other state-run banks such as the Government Savings Bank needs further discussion but a conclusion will not be reached soon, he said.

Mr Kittiratt said his recent letter to the Bank of Thailand’s Monetary Policy Committee (MPC) was merely an expression of concern over the country’s high interest rate, adding that he did it in his capacity as finance minister who is obliged by the law to supervise the central bank.

Ampon Kittiampon, an MPC member, said the finance minister’s signal for an adjustment of policy interest rate was not a pressure on the committee, adding that several elements must be taken into consideration in reducing the interest rate. (MCOT online news)

-- TNA 2013-02-05

escalating non-performing loans (NPL) at the SME Bank and the Islamic Bank of Thailand (IBank). Both banks were instructed to submit their rehabilitation plans to the Finance Ministry.

How deep in the newspapers was this little chestnut hidden?

As for changing the finanace minister now, that really would be a very bad idea.

Makes sense to me she needs an experienced team and with Kittiratt she has an experienced

fibber. But this one is honest he admits it.

That puts him a head of her. She is still claiming she runs the show and Thaksin has nothing to do with it.

Actually.....he's the only one that can count up to 10 without assistance.

Hiccup? She's calls this a hiccup. Wouldn't want to be around when she's describing an unmitigated disaster……oh wait, I forgot, that's already happened with the rice scheme!

Yes better keep him, never know when you might need another white lie.

Or there may be a need for threats:

"My intention is to have the BOT chairman read the letter to all board members and I also specified the requirement for the BOT chairman to write back on the response. I hope that the board, consisting of the governor and two deputies, would now learn the legal consequences," he said in the daily.

Edited February 5, 201313 yr by Robby nz

Actually.....he's the only one that can count up to 10 without assistance.

Are you sure he can do that, he might say he can but he is on record as being frugal with the truth.

The displayed incompentence of this government, to date, from the cabinet, downward, has been readily apparent . Big brother, who has displayed no appitude toward improving Thailand's lot on the domestic nor world financial scene, throughout his carear of criminal activity.. A PM who has distinguished herself for attending less than 30% of the government house sessions, while having the time to do press releases that bring questions about her depth of understanding of leading a country.

It may be that we are seeing a modern government that has positioned the vast majority of their people at the level of extreme incompentance. thus, "you have to dance with those that brung you".

escalating non-performing loans (NPL) at the SME Bank and the Islamic Bank of Thailand (IBank). Both banks were instructed to submit their rehabilitation plans to the Finance Ministry.

How deep in the newspapers was this little chestnut hidden?

As for changing the finanace minister now, that really would be a very bad idea.

Just exactly, how many good ideas has this Govt had? I am surprised after Kittiratt denied more money to flow into the rice scam unabated, his ass would be iced first chance.

The displayed incompentence of this government, to date, from the cabinet, downward, has been readily apparent . Big brother, who has displayed no appitude toward improving Thailand's lot on the domestic nor world financial scene, throughout his carear of criminal activity.. A PM who has distinguished herself for attending less than 30% of the government house sessions, while having the time to do press releases that bring questions about her depth of understanding of leading a country.

It may be that we are seeing a modern government that has positioned the vast majority of their people at the level of extreme incompentance. thus, "you have to dance with those that brung you".

Well said. And this is almost a copy book repeat of the lead in to the 1997 crash. But let us not forget the man behind this is hell bent on revenge and you can bet the fiscal pundits of the same feather are guiding his intent with promises of rewards for breaking Thailand on his return. I would consider the blind leading the blind is an accurate description of the present political climate. The ramifications of this will unfold far too quickly for the present government to handle and that day will bring a downfall Thailand has never experienced when the bankers take over and intelligent governance will all but cease.

PM insists Finance Minister Kittiratt stay on as economic chief

Of course she would. He's lined her purse very well since he took the position. Why fix something that isn't broken?

-mel.

Yes better keep him, never know when you might need another white lie.

Or there may be a need for threats:

"My intention is to have the BOT chairman read the letter to all board members and I also specified the requirement for the BOT chairman to write back on the response. I hope that the board, consisting of the governor and two deputies, would now learn the legal consequences," he said in the daily.

And after that little gem, in the other paper: "Finance Minister Kittiratt Na-Ranong insisted on Tuesday that he has never interfered in the decision making process by the central bank’s Monetary Policy Committee (MPC)".

Edited February 5, 201313 yr by whybother

The displayed incompentence of this government, to date, from the cabinet, downward, has been readily apparent . Big brother, who has displayed no appitude toward improving Thailand's lot on the domestic nor world financial scene, throughout his carear of criminal activity.. A PM who has distinguished herself for attending less than 30% of the government house sessions, while having the time to do press releases that bring questions about her depth of understanding of leading a country.

It may be that we are seeing a modern government that has positioned the vast majority of their people at the level of extreme incompentance. thus, "you have to dance with those that brung you".

Well said. And this is almost a copy book repeat of the lead in to the 1997 crash. But let us not forget the man behind this is hell bent on revenge and you can bet the fiscal pundits of the same feather are guiding his intent with promises of rewards for breaking Thailand on his return. I would consider the blind leading the blind is an accurate description of the present political climate. The ramifications of this will unfold far too quickly for the present government to handle and that day will bring a downfall Thailand has never experienced when the bankers take over and intelligent governance will all but cease.

You lost me with "intelligent governance will all but cease" I wasn't aware it had started.

The problem as I see it is that individuals (or small groups) will make finacial decissons based on personal interest rather than national interest, I'll bet if you looked into the background of anyone involved in national finance you'l find that policy supports their own interests and investments, not hard to figure really in a corrupt administration such as this

I'm getting increasingly concerned that the gung ho, populist, approach of this govt, and its lack of truly qualified people, is setting Thailand up for another Tom Yung Gung financial crash, albeit on a lesser scale to '97. Just like '97, decisions will me be made badly in the interests of individuals, or too late, and deferring to the leader in Dubai is just going to complicate and compound things. Frankly, a mean-spirited part of me is looking forward to it because it's the one and only way you are going to get the poor masses to finally realise they voted for the wrong crowd. Only when credit ratings are downgraded and all this fast-money takes flight from the stock market, with a sudden fall in the baht (good for exporters and tourism), with lots of businesses going down and laying people off, will people finally confine the Shinawatras to the dustbin of history.

I'm getting increasingly concerned that the gung ho, populist, approach of this govt, and its lack of truly qualified people, is setting Thailand up for another Tom Yung Gung financial crash, albeit on a lesser scale to '97. Just like '97, decisions will me be made badly in the interests of individuals, or too late, and deferring to the leader in Dubai is just going to complicate and compound things. Frankly, a mean-spirited part of me is looking forward to it because it's the one and only way you are going to get the poor masses to finally realise they voted for the wrong crowd. Only when credit ratings are downgraded and all this fast-money takes flight from the stock market, with a sudden fall in the baht (good for exporters and tourism), with lots of businesses going down and laying people off, will people finally confine the Shinawatras to the dustbin of history.

Well, the way to lessen that impact is to let the baht float to it's value. Money in, money out, manage the issue to prevent inflation and asset bubbles.

I was however regaled with an opportunity last week to lend money to someone claiming a 90% increase in the value of their stock portfolio last year. This issue of capital gains tax free earnings on the stock market inevitably creates bubbles. But much like land, they don't want to vote for xmas and calm the whole thing down through taxation.