Thailand Not Broke, Says Chidchai

[george]

Thailand not broke, says acting Prime Minister Chidchai

BANGKOK: -- Acting Prime Minister Pol. Gen. Chidchai Vanasatidya dismissed allegations that the Thai government had gone broke and confirmed that state revenues had been collected up to the targeted amounts.

Gen. Chidchai explained that some budgets may remain untapped by varied government agencies due to technical snags involving the budding use of the new Government Fiscal Management Information System (GFMIS).

He said the baht had strengthened due to inflows of foreign currencies used in profit-speculating and take-over bids among business circles.

Though export earnings might be adversely affected as a result of the rising Thai currency, that would only happen on a short-term basis, the acting Premier said.

Meanwhile, the Government's mega-projects will be shelved indefinitely, until the next Government has been formed, Gen Chidchai said.

As chair of Tuesday's cabinet meeting, Gen. Chidchai reported on the problem of rising oil prices. The Finance and Energy ministries, as well as PTT Plc, he said, will adopt measures to help farmers and others relying on oil-consuming transport systems and to promote energy-saving measures as well alternative energy sources in place of petrol.

--TNA 2006-04-18

[saeb]

Thailand not broke, says acting Prime Minister Chidchai

BANGKOK: -- Acting Prime Minister Pol. Gen. Chidchai Vanasatidya dismissed allegations that the Thai government had gone broke and confirmed that state revenues had been collected up to the targeted amounts.

Gen. Chidchai explained that some budgets may remain untapped by varied government agencies due to technical snags involving the budding use of the new Government Fiscal Management Information System (GFMIS).

He said the baht had strengthened due to inflows of foreign currencies used in profit-speculating and take-over bids among business circles.

Though export earnings might be adversely affected as a result of the rising Thai currency, that would only happen on a short-term basis, the acting Premier said.

Meanwhile, the Government's mega-projects will be shelved indefinitely, until the next Government has been formed, Gen Chidchai said.

As chair of Tuesday's cabinet meeting, Gen. Chidchai reported on the problem of rising oil prices. The Finance and Energy ministries, as well as PTT Plc, he said, will adopt measures to help farmers and others relying on oil-consuming transport systems and to promote energy-saving measures as well alternative energy sources in place of petrol.

--TNA 2006-04-18

Who's he talking to then?. According to the Finance Ministry 3 weeks ago - the reserves were sufficiently low that suppliers to government contracts were not being paid.

The recent incidence of government owned aircraft crashing due to maintenance not being carried out, or on time, replacement parts not being procured or delivered on time, kinda shows that there isn't enough money to keep what they have flying.

(Look at the totals of aircraft available on paper as opposed to aircraft actually serviceable).

It is always said after an air accident in Thailand that the aircraft are old : This means diddly squat if the things are maintained in accordance with the approved maintenance schedules.

And if there ain't no money for bits for the things............

[Rinrada]

...it must be BUST.....

[Thaising]

The finance ministry did mention that once the tax revenue collection from taxpayers starts rolling in from this month, they would be able to covers the country expenses for the next few months. Is this an excuse for the ministers to cover-up their backside?

Edited April 19, 2006 by Thaising

[stoneman]

Another thought that I had that might indicate a "cash shortage" is the current shortage of diesel fuel...In order to refine the oil, they must buy the crude oil from outside Thailand and pay for it in American Dollars(I think)..The current shortages of fuel may indicate that the government does not have the funds to make these payments... If there is not a cash shortage, the other reason to withhold shipments and payments for crude would be that the balance of payments will run even further negative because of these payments..

[hammered]

The egat privatization was due to net the governnment around 70 billion. I hope they didnt spend it all before the court case. And of course populist policies cost huge amounts of money. The way they have been introduced while tax has actually been cut is probably not exactly what financiers would advise.

[stumonster]

and how many of the people will follow the example of numbawunsun when it comes to paying their taxes ?

I wonder if the irony will be apparent if thailand needs some large loans now?

[opothai]

i thought thailand were paying for goods with chickens [ see previous threads ]

can they not pay a poultry sum for oil and imports

[jdinasia]

it may be a very good time to invest in Longan fruit futures too!

[ray23]

And what about that baht

[ilyushin]

Broke. Flat broke and that's a fact! Wait until the MOF and BOT issue some press release over the next month.

All mega projects off!

A Central budget of 270 billion baht disappeared last fiscal year under the authority of Doc Tox. Scared me seeing his exclusive power over the spending.

[astral]

With the Baht so high it might be a good time to get money out,

you can always bring it back when the Baht falls again, as I feel

sure it will.

[saeb]

With the Baht so high it might be a good time to get money out,

you can always bring it back when the Baht falls again, as I feel

sure it will.

Shades of the Chavalit government.........one of the great unreported (in Thailand) scandals.

The sheer amount of Baht that left the country before the 'all of a sudden'..'instant decision' to float the currency.

Created a lot of VERY rich people in the inner circle that did. And then they all blamed Soros.

Like one person who speculates in money markets brought down a whole economy.

Right ho- I do believe that Alice in Wonderland is a true story.

Fact of the matter is that a lot of people involved in supply to the Government in Thailand have signed orders to supply goods bought overseas. They have paid for these goods from their own company funds, have delivered the goods and are not now being paid for these orders.

This in itself creates insecurity within the workforce as they are not going to be paid by the companies that employ them, and banks are going to have loaned funds to companies to buy which are not going to paid back.

In itself, companies which have credit accounts with foreign suppliers are not going to be able to pay.

This will further increase the distrust that many, many specialist companies have with dealing in any form of government supply within Thailand.

It is such a pity - but it is just the same old wheel. The politicians spout off about 'Thai Rak Thai', 'We are doing this for the country'........'We love Thailand'.....'The country must stand as one'........ whilst lining their own nest at the expense of the population.

What happens when there is a sufficiently educated population that begins to ask why?, instead of when?.

[Ricardo]

And what about that baht

Wouldn't the currently-strong Baht be making those oil-imports cheaper, and cushioning the effect of world oil-price-rises, at present ? So look for the full impact of oil-prices to work-through into the Thai economy only once the Baht falls ... if it does eventually.

[Scott]

I wonder if there is any political party that would maybe want to make it look like the country can't possibly survive unless they are in power.

[Plus]

Did anyone read of government employees being unpaid for three months? They scraped the funds together to pay their salaries just before Songkran holidays. Someone can search the Nation's site.

It invlolved temporary/part time employees who couldn't complain themselves.

[Rinrada]

Always remember about 25 plus years ago I was working in Nigeria but not on an off shore salary.

It was the height of an earlier Oil boom and although a bit of a rough old place it was for that couple of years..fun...

Wages although not great Circa £25k but with approx 25% tax (ended up with 3 wives and 14 kids..on paper)deducted and with only half of remainder being remitted we could all get by quite well and as said.....

The local exchange rate at the time was @ 1:1..ie £1 +Niara (local dosh)however when the bite came things started to change.

Bank remittances got harder to arrange with long delays and you could spend days just hanging around trying to make a withdrawel ...then the black market rates took off.

Expats going home needed to get rid of ther local stuff ..cant take it out with you....they had worked hard for it....so how about 2-1...3-1...4-1.....

Now NOBODY takes a contract out there/in these dum.s...sorry places unless its paid OFFSHORE with NO tax ...plus the other usual benefits...

But imagine it happened in LOS..................Could It?...

Read a little thingy somewhere that with the hiked Xchange rate and diff in wages/earnings/depts /oil bills living standards/costs/ the real value of the Baht to the pound sterling should be at least

...wait for it.....

£1= Bt 350........$1=Bt200.......

Could it happen?

In Nigeria the official rate is now @ £1=N255...and they have OIL.

All those Anjarns would me thinks need a pay rise... and a wee bottle of Heine in Nana would be selling for.....800 dints a throw....

[jdinasia]

If I understood that post ... I'd be asking myself "huh"?

[slimdog]

The major difference Rinrada was that at the time in question the Naira was artificially priced. If I remember correctly, you could get 5-6 naira for a pound at the currency exchange places in central London. Whereas with the baht today you would be lucky to get 60 baht to the pound at the same exchanges.

[samran]

Thats right, if the baht wasn't floating around it's proper rates, you'd see all sorts of things happening like people only accepting USD's and EUR's for payment, and black markets all over the place exchanging baht for it's actual rate.

[jdinasia]

I was here in 97 when they floated the Baht (before that it was pegged on the USD .... it went from 25 to 83 against the USD ....

they still accepted the Baht ....

hard not to when that is what 62Million+ people have as currency.

[Rinrada]

Lots of the big international hotels insisted on greenbacks for a while until they got a ...how do you say....a...bol-lock-ing

If you go back a few years further ...circa 1970s..I believe the going rate was about 18-19 bt = $US1.

It was only later by agreement...nudge-nudge-wink wink -say no more ..that the US/Thai Gov got together for a bit of back scratching and pegged it at @ 25...for the next 20 odd years ...

[stumonster]

a letter this week to stickman claims

Just how is the economy really doing?

The rumours going around Thailand's "Fleet Street" are that many advertisers are not paying their bills, causing big problems for many of the local newspapers (one newspaper - you guess the language - in particular is reputed to be in deep doo-doo and being forced to sell off its most vital assets - although much can be said for the fact that this company is very poorly managed). When companies renege on paying for their advertising, it is usually quite a good indicator that the economy is in trouble. It's a worry. Don't believe what the Bank of Thailand tells us about the expected growth in the economy for the fiscal year (which ends September 30). They're not independent enough to trust. Watch the real estate market. A certain gentleman who is very much tax-challenged has a lot to answer for, and I hope one day he gets his much-deserved come-uppance. Shades of 1992 and 1997. Mark my words.

surely if this is true there must be some more informaton available

[Terminator]

well as they have a good credit rating due to toxin's foresight, they always can get another bail-out from the imf...if they have money...on another note united nations is broke too, my supplier has been waiting for 90 days for payment...waiting for new york no money

[camerata]

I was told by a banker that the banks don't have any money now - that's why they are all offering up to 5.5% on fixed deposits. And he thought the interest rate would go even higher.

[farangene]

I was told by a banker that the banks don't have any money now - that's why they are all offering up to 5.5% on fixed deposits. And he thought the interest rate would go even higher.

Also heard interest rates will be going higher, a lot higher, very soon.

Wonder if Thaksin (with lots of headlines, trumpets playing and chest beating about how great things were) regrets paying off the IMF debt last year??