Thai govt not worried about treasury reserves, confident of Finance Ministry management skills

[webfact]

Govt not worried about treasury reserves, confident of Finance Ministry management skills

 

BANGKOK, 13 February 2917 (NNT) – The government is not worried regarding the remaining amount of treasury reserves and is confident the Ministry of Finance can balance out expenditures for investments that will enhance the future of the county, says official. 

Advisor to the Minister of Finance Nattaporn Jatusripitak said regarding the country’s treasury reserves status, that treasury reserves are stored for government projects with an appropriate amount. 

As to the question on how quickly the government can refill the treasury reserves, he disclosed that the Public Debt Management Office will be able to get new loans within 2 days. The amount of money in treasury reserves is considered sufficient if it can cover government expenditures for 2 days. Moreover, the excessive reserves will result in a financial burden on the government because it requires the government to deposit the money with the Bank of Thailand without receiving interest. 

The Minister of Finance advisor affirmed the country has good financial discipline, adding that the government has taken loans in preparation of future investments. 

He said the cash reserves does not reflect the government’s financial status. It is the money the government keeps on hand to meet short-term and emergency funding needs.

 

-- nnt 2017-02-13

[Eric Loh]

So spending beyond your means that you have to take from your reserves meant for emergency crisis use is not worrying. Got it.

[Cake Monster]

Public Debt Management Office can get new loans within 2 days !

 

Only enough in reserve to cover Gov,t expenditure for 2 days !!!!

 

Seems as if the public coffers are being depleted at an awesome rate for a statement such as this .

 

Some would say at a meltdown rate !

 

 

[oceanyachting]

I didn't know macroeconomics was covered in military basic training

[fruitman]

5 hours ago, Eric Loh said:

So spending beyond your means that you have to take from your reserves meant for emergency crisis use is not worrying. Got it.

 

Wouldn't you think that they just had to spend a lot on emergency crisis like floodings and droughts?

[elgordo38]

7 hours ago, webfact said:

It is the money the government keeps on hand to meet short-term and emergency funding needs.

 

Its called a slush fund. Every once in a while you dip in and go out and get flushed and slushed. 

[elgordo38]

They all belong to the government circle of confidence. Its like a circle of trust with benefits. 

[leeneeds]

Easy to move decimal points, 

[Srikcir]

7 hours ago, webfact said:

As to the question on how quickly the government can refill the treasury reserves, he disclosed that the Public Debt Management Office will be able to get new loans within 2 days.

The Thai Treasury Reserves are down 85% since the May 2014 coup. Surely there are no remaining excessive reserves as of this month. If there were, why would loans be used allegedly to supplement the reserves? For that matter why loans instead of additional revenues? Treasury Reserves are the positive net difference between asset and liability values - the principal amounts cancel out in the balance sheet if loan interest is ignored.

 

7 hours ago, webfact said:

the excessive reserves will result in a financial burden on the government because it requires the government to deposit the money with the Bank of Thailand without receiving interest. 

Finance Minister Apisak Tantivorawong said that depletion of 420 billion baht from the coffers was a healthy adjustment and meant the government was relying less on loans.

http://www.khaosodenglish.com/politics/2017/02/06/thai-treasury-loses-85-since-coup/

So why talk about getting new loans to refill the reserves? Unless the claimed 75 billion baht reserve doesn't exist and money must be rushed into the reserve rather than wait for additional revenues that would tip asset value greater than liabilities. Such a scenario could further cripple foreign trade exchange.

[chiang mai]

7 hours ago, Eric Loh said:

So spending beyond your means that you have to take from your reserves meant for emergency crisis use is not worrying. Got it.

Eric!

[chiang mai]

14 minutes ago, Srikcir said:

The Thai Treasury Reserves are down 85% since the May 2014 coup. Surely there are no remaining excessive reserves as of this month. If there were, why would loans be used allegedly to supplement the reserves? For that matter why loans instead of additional revenues? Treasury Reserves are the positive net difference between asset and liability values - the principal amounts cancel out in the balance sheet if loan interest is ignored.

 

Finance Minister Apisak Tantivorawong said that depletion of 420 billion baht from the coffers was a healthy adjustment and meant the government was relying less on loans.

http://www.khaosodenglish.com/politics/2017/02/06/thai-treasury-loses-85-since-coup/

So why talk about getting new loans to refill the reserves? Unless the claimed 75 billion baht reserve doesn't exist and money must be rushed into the reserve rather than wait for additional revenues that would tip asset value greater than liabilities. Such a scenario could further cripple foreign trade exchange.

"Such a scenario could further cripple foreign trade exchange". What does that, please?

 

Also, the governement has said the previous levels of the Treasury Reserve Account was historically too high, it will therefore be reduced to a lower level (that's what the loans are for, to top up the account) and therefore allow more funds to be invested.

[davehowden]

"Just remember, debits are on the side nearest the window

[Brer Fox]

8 hours ago, webfact said:

Govt not worried about treasury reserves, confident of Finance Ministry management skills

Pardon me while I laugh hysterically behind my hand.

 

58 minutes ago, elgordo38 said:

Its called a slush fund. Every once in a while you dip in and go out and get flushed and slushed. 

It helps to finance trips to Hawaii with all the add-on pleasures.

[Brer Fox]

Looks like the cat is out of the bag! Unlike Greece which has the EU to bail them out Thailand has no-one. Unless they choose to sell their souls to the devil which they may do and it wouldn't be the first time in history.

Time to crank up the money printing machines. 

[the guest]

Most of the other countries borrow money, can't see why Thailand has to be any different, besides their debt is small in comparison. Sweden as an example is nearly half a trillion dollars in debt, and there is only 9,7 million in the country, which means the country is already bankrupt.

[waldroj]

"...It is the money the government keeps on hand to meet short-term and emergency funding needs..."

 

Most so-called military "generals" of the modern-era will tell you that you should hold off using your "reserves" until it is absolutely necessary to do so - or (heaven forbid), as an emergency measure to avoid being over-whelmed.

 

But, then again, as so many other TV posters have observed time and time again, this IS Thailand. In addition, we are told (by the military junta) that THEY know (better than economists) what is best for the country !!!

[Dumbastheycome]

Thailand  is  apparently  endowed  with  a multitude of  expat  economic experts who  just accidentily  arrived  here after retirement  or other demanding  reasons due  to  fiscal limitations ! 

[maoro2013]

12 hours ago, davehowden said:

"Just remember, debits are on the side nearest the window

Maybe these guys were in a different classroom.

[Eric Loh]

16 hours ago, fruitman said:

 

Wouldn't you think that they just had to spend a lot on emergency crisis like floodings and droughts?

These yearly calamities are allocated in the main budget and in the supplementary budget if aids are extensive. I will consider unpredictable disasters like a Tsunami, earthquake or SARS  as emergency crisis. Now that the reserves are spent, let's pray Thailand will not be hit by such catastrophic disasters.

 

[mtls2005]

Does this whole "Monkey Cheek" thing apply to finance at all?

 

Or just water?

 

And are they following the "principles of the Sufficiency Economy"?