Bill Seeking Bt2 Trillion Loans To Be Tabled To Lower House Next Month: Thailand

[webfact]

Bill seeking Bt2 trillion loans to be tabled to Lower House next month
By English News



BANGKOK, Feb 28 – An ambitious plan to develop Thailand’s overall infrastructure which will compel the government to seek Bt2 trillion in loans was approved on Tuesday by the cabinet which assigned the Finance Ministry to draft a bill on the mammoth public debt to parliament next month, according to a senior Thai official.

Transport Minister Chadchart Sittipunt said the bill to seek Bt2 trillion in loans should be submitted to the House of Representatives for its deliberation on the first reading within next month.

He said the cabinet gave a green light to the Transport Ministry’s proposed investment to build fundamental communications infrastructure to boost Thailand’s competitiveness, minimise gaps among urban and rural people and lessen the problems of environmental pollution.

The Transport Ministry’s project for infrastructure development will cost the country Bt4.2 trillion, 80 per cent of which will be used for construction of rail systems, 10 per cent for road construction and the rest for water management and other means of communications, he said.

He described the Bt2 trillion loan package bill as a mechanism to boost foreign investors’ confidence in Thailand, reassuring the investor community that the government has a clear investment plan.

The government, he said, will conduct seminars, forums for public opinions and exhibitions to foster understanding among the Thai public on the mega projects which include, among others, four high-speed train routes (Bangkok-Chiang Mai, Bangkok-Nakhon Ratchasima, Bangkok-Hua Hin and Bangkok-Pattaya), 10 electric train routes connecting the capital with suburban areas, and construction of motorways to connect Bangpa-in in Ayutthaya province with Nakhon Ratchasima, and the Bangyai vicinity with Kanchanaburi.

The Thai public will see these projects become tangible in the next seven years, he said, adding that the Finance Ministry’s Public Debt Management Office will ensure that the loans will not exceed 50 per cent of gross domestic product (GDP).

When the projects are complete, Thailand’s logistic costs will be reduced from 15 per cent of GDP to 13.2 per cent while Malaysia’s and Singapore’s current logistic costs are 13 per cent and 9 per cent respectively, Mr Chadchart said. (MCOT online news)


-- TNA 2013-02-28

[seajae]

wow, someones going to make a lot out of this, 30% of this going into peoples pockets is a real steal for the government and their lackies. Lokks like all the current politicians in government will retire with a great bank account, pity the country will be collapsing around them though.

Edited February 28, 2013 by metisdead
: Formatting.

[dcutman]

The Transport Ministry’s project for infrastructure development will
cost the country Bt4.2 trillion, 80 per cent of which will be used for
construction of rail systems, 10 per cent for road construction and the
rest for water management and other means of communications, he said.
He described the Bt2 trillion loan package bill as a mechanism to boost
foreign investors’ confidence in Thailand, reassuring the investor
community that the government has a clear investment plan.

Apparently investors or the Govt for that fact, dont see the need or importance for a clean and safe environment. Maybe someday people will get tired or sick enough from eating/drinking poisoned food and water from toxic chemicals and human sewage. Or being burried in the solid waste and garbage. At present the yearly national budget (witch has been slashed 50% by Yinglucks administration) for for this desperately needed infrastructure is only 0.1% of GDP. or less than 1.5 bill baht.

[webfact]

Cabinet okays draft legislation on THB2tril state borrowing plan

BANGKOK, 28 February 2013 (NNT) – The Cabinet has approved the draft law to enable the government to make a large borrowing for the implementation of its infrastructure development initiatives.

Deputy Prime Minister and Finance Minister Kittiratt Na-Ranong revealed on Wednesday that the weekly Cabinet meeting agreed to approve the draft bill, which will enable the Finance Ministry to make 2-trillion-baht public borrowing under the state-initiated infrastructure investment plans.

Mr. Kittiratt stated the government has anticipated that much-anticipated, full-scale basic infrastructure investment plans will actually require approximately 4.2 trillion baht for the project implementation during the next 10 years.

According to the Deputy PM, the approved draft bill will cover only major development plans, such as the dual-track rail system, the high-speed train system and the interregional highways.

For other projects, Mr. Kittiratt said funding will be allocated from the state fiscal budget. He added that the government still aims to turn the budget deficit into the balanced budget, within the next few years.


-- NNT 2013-02-28

[billd766]

I have carefully read the story but I couldn't find anywhere how much the interest on the principal would be nor how many years it would take to repay the loans.

Come to think of it until the high speed rail links are up and running AND making a profit Thailand will be bleeding money for decades.

[rubl]

We'll start with asking for only THB 2 trillion, and later on we'll ask for the rest of barely THB 2.2 trillion. Just pass the bill and we'll tell you later how the money is to be spent, transparently of course

[jonclark]

This shouldn't come as a surprise to anyone as the simple rational behind the whole PTP economic strategy (aka taksinomics), is borrow to build; to create the illusion of development. Who actually pays for it or where the money comes from now is not important, as when that day (of repayment) arrives many of the PTP elite will be retired, and will have the luxury, whilst living in luxury, of scoffing at how their successors made a mess of everything and how things were so much better in their day.

Buy now, pay later simple and effective and something which most Thais can relate to.

[Pimay1]

as when that day (of repayment) arrives many of the PTP elite will be retired, and will have the luxury, whilst living in luxury

In another country after doing a runner.

[GentlemanJim]

This is akin to base jumping without a parachute.

Thailand hub of extreme financial sports!

Now then I reckon 5-10 years to sort my family out with a good alternative to living here.

[JetsetBkk]

Will this strengthen or weaken the baht?

(The latter, hopefully.)

[SOTIRIOS]

.....is anyone keeping count.......

......trillions and trillions.............poor pathetic 'puak rao'.........

....I guess it is what the people who voted in this present government deserve...

[belg]

the government will have my trust if 1) i can own 100% of my own company 2) if i can buy some land and build my HOUSE not that of my wife 3) gives me a 10 year visa for 1 & 2

that would be a good start to gain some trust

[Judo Chop]

Easy to make such decisions with other peoples hard earned money.

[siampolee]

SOTIRIOS.

Sadly it isn't the current bunch of electors who took the money and voted this current maladministration into power who are going to be footing the bill.

It's going to be the next umpteen generations of the Thai people who will be enslaved into debt bondage whilst those who initiated this project and one or two more projects too will like their descendent's will be living in luxury.

Thaksin and his family and their brown nosing acolytes are indeed the financial vultures who will be feeding off of the financial carcass of the Thai people as a result of these projects and mega loans.

Indeed this particular proposal puts the machinations surrounding the now defunct B.B.C.into the shade by the very magnitude of these assorted scams schemes.

One is led to wonder whether the hand of Saxena is involved in the matter along with a number of currently barred political figures who were part of the same gang some who still reside in Thailand, some have returned to Thailand and some live in the Arab world as a convicted felon and bail jumper refugee from justice.

Edited February 28, 2013 by siampolee

[khaowong1]

wow, someones going to make a lot out of this, 30% of this going into peoples pockets is a real steal for the government and their lackies. Lokks like all the current politicians in government will retire with a great bank account, pity the country will be collapsing around them though.

Like the politicians really give a sh**. They will already have their retirements set.. The rest of the populace can eat cake.. One day this country is going to fold like a house of cards..

[bigbamboo]

With the kind of money the government is talking about spending you as a Thai you would have to ask yourself one question. Should I trust these people with this kind of money.... my money?

Well, would you?

[h90]

wow, someones going to make a lot out of this, 30% of this going into peoples pockets is a real steal for the government and their lackies. Lokks like all the current politicians in government will retire with a great bank account, pity the country will be collapsing around them though.

no it is no pity if the country collapse around them, because they will transfer their billions outside before and back after making another few billions and as well their maids, second/third/fourth wives, gardeners, cooks etc etc will be also cheaper, so no pity at all. It is anyhow the same group as 1997.

[rubl]

With the kind of money the government is talking about spending you as a Thai you would have to ask yourself one question. Should I trust these people with this kind of money.... my money?

Well, would you?

Well, not as Thai, but as a law abiding, taxpaying foreigner on a non-B visa and with valid workpermit I can only say of course.

Oh, look what just flew past my window here in Bangkok

Edited February 28, 2013 by rubl

[Ricardo]

Oh, look what just flew past my window here in Bangkok Flying_Elephant.jpg

I say, is that the new Mark-1 trademarked-authentic-Thai flying-elephant, or the Mark-2 with discreet winglets fitted at the ends of the ears ?

We have a thread running, in the travel-forum, about that sort of thing !