Social Security Office nods Finance Ministry’ loan request

[Lite Beer]

Social Security Office nods Finance Ministry’ loan request

BANGKOK, 7 June 2015 (NNT) – The Social Security Office has given the green light to the Ministry of Finance’s loan request of 200 billion baht.

Permanent-Secretary of the Labor Ministry Nakorn Silpa-Acha said the loan green-lighted by the Social Security Office’s board would be invested in the government’s infrastructure projects, such as railway construction and water management.

According to Mr. Nakorn, the Ministry of Finance has agreed in principle to issue bonds with a 3-3.5 percent interest as a repayment guarantee. In case the Ministry still needs further loans, the Social Security Office will urge it to pass a law which allows the government it to borrow from the Office as well as to pay for the ministry's unsettled debt of 80 billion baht incurred from its required contribution to the Social Security Fund.

Thai Labour Solidarity Committee, however, voiced its concerns over the Social Security Office’s plan, saying that 13 million members of the Social Security Fund could be affected. Wilaiwan Sae Tia, President of the Thai Labour Solidarity Committee, said she would submit a letter opposing the idea to Labour Minister General Surasak Kanchanarat, and would discuss the issue with him within this month.

-- NNT 2015-06-07

[clockman]

The ministry already owes them 80 billion! I would be very concerned.

[casualbiker]

This same Ministry of Finance who along with the Ministry of Commerce cocked up the rice pledging so badly!!!

[Robby nz]

This same Ministry of Finance who along with the Ministry of Commerce cocked up the rice pledging so badly!!!

Under the auspices of the Rice Policy and Management Committee chaired by the previous Prime Minister who attended the initial meeting of that committee then never turned up for another.

You may not have noticed but the previous Minister of Finance (of white lies fame) has been replaced along with the previous Ministers of Commerce and their off-siders who are now facing serious charges regarding said 'cocked up rice pledging'.

[lostinisaan]

And I thought the money would be for Social Security Issues.....

Thai Labour Solidarity Committee, however, voiced its concerns over the Social Security Office’s plan, saying that 13 million members of the Social Security Fund could be affected.

Gotta love the wording though. WOULD, or WILL be affected....

And I'm only one of them.....maybe I should take my money out, before it's too late.

Edited June 7, 2015 by lostinisaan

[geriatrickid]

Incredible. It is so wrong to borrow from social benefits to pay current requirements. Those funds are held in trust for the beneficiaries who paid into the fund. It doesn't belong to Military administration. The government can't fund its programs including an increased defense budget and so it takes money for the poor, the elderly and the disabled.

When the former government attempted to borrow from conventional sources to meet its obligations the government bashers were up in arms.

Where are Thai Visa's hypocrites now? Remember your choice comments?

ramrod71 on 25 Feb 2014- 20:22 said: Meanwhile, the Government Pension Fund yesterday said it would not buy government bonds.

That's encouraging, the pension fund doesn't trust the governments ability to pay. They must have been talking to the farmers.

And what of the military controlled pension fund now approving a loan to the military administration?

bigbamboo 27 Feb 2014 Couldn't they sell some of those expensive clocks and tables and water coolers they bought. Then there's the contents of Chalerm's drinks cabinet.... that must be worth a bit.

Well big bamboo, maybe the army could sell off a golf course or a resort?

Nong 38 Posted 2014-02-25 13:04:27 Perhaps someone should ask the PM where the money to run this daft scheme has gone, the buck stops with you Mrs!

Perhaps someone should ask the military where the money for its spending goes? The baht stops with the General doesn't it?

robblock 24 Feb 2014: Corruption how you look at it it should enough to impeach the government and get rid of it maybe with some jailtime for those in the rice program.

How about some jailtime for the people implicated in the human trafficking? Remember those 3 senior officers from 2013? Did they go to jail? How about all the people who have stolen land from national preserves? What about the bomb in Samui? You remember that don't you? The General's entourage promised big names would fall, but no nothing happened. How about charging them for dereliction of duty?

SoalBundy Posted 2014-02-25 13:46:01 Oh what a tangled web we weave When first we practice to deceive

Know what I hear? Crickets. Maybe we'll hear from some of those who were so full of moral outrage last year?

[casualbiker]

Incredible. It is so wrong to borrow from social benefits to pay current requirements. Those funds are held in trust for the beneficiaries who paid into the fund. It doesn't belong to Military administration. The government can't fund its programs including an increased defense budget and so it takes money for the poor, the elderly and the disabled.

When the former government attempted to borrow from conventional sources to meet its obligations the government bashers were up in arms.

Where are Thai Visa's hypocrites now? Remember your choice comments?

ramrod71 on 25 Feb 2014- 20:22 said: Meanwhile, the Government Pension Fund yesterday said it would not buy government bonds.

That's encouraging, the pension fund doesn't trust the governments ability to pay. They must have been talking to the farmers.

And what of the military controlled pension fund now approving a loan to the military administration?

bigbamboo 27 Feb 2014 Couldn't they sell some of those expensive clocks and tables and water coolers they bought. Then there's the contents of Chalerm's drinks cabinet.... that must be worth a bit.

Well big bamboo, maybe the army could sell off a golf course or a resort?

Nong 38 Posted 2014-02-25 13:04:27 Perhaps someone should ask the PM where the money to run this daft scheme has gone, the buck stops with you Mrs!

Perhaps someone should ask the military where the money for its spending goes? The baht stops with the General doesn't it?

robblock 24 Feb 2014: Corruption how you look at it it should enough to impeach the government and get rid of it maybe with some jailtime for those in the rice program.

How about some jailtime for the people implicated in the human trafficking? Remember those 3 senior officers from 2013? Did they go to jail? How about all the people who have stolen land from national preserves? What about the bomb in Samui? You remember that don't you? The General's entourage promised big names would fall, but no nothing happened. How about charging them for dereliction of duty?

SoalBundy Posted 2014-02-25 13:46:01 Oh what a tangled web we weave When first we practice to deceive

Know what I hear? Crickets. Maybe we'll hear from some of those who were so full of moral outrage last year?

Are the money's really held in trust or is it that the social security fund buy and sell profit bearing bonds and share portfolios?

Surely the money isn't just sitting in a vault somewhere!

But I do agree that the finance ministry probably isn't a sure bet profits wise....

[Srikcir]

Internal loans like this one using treasury bonds is a typical financial tool of governments.

The problem can be that too much such borrowing will increase future bond interest rates, decrease the country's currency value, and reduce available capital in the marketplace. On the plus side, effective use of such funds to build/improve nation infrastructure will increase GDP growth which in turn will increase the value of the currency.