Public debt outstanding hits Bt6.09 tn at end-February

[snoop1130]

Public debt outstanding hits Bt6.09 tn at end-February

By The Nation

 

Thailand’s public debt outstanding as of February 28 was Bt6.09 trillion. 

 

The total public debt outstanding comprised Bt4.63 trillion of government debt, Bt972.46 billion of state-owned enterprises’ debt, Bt460.47 billion of government guaranteed financial SOEs’ debt and Bt19.35 billion of other government agencies’ debt. 

 

Compared with January, public debt increased by Bt30.58 billion.

 

Public debt to gross domestic product as of February was 41.96 per cent, down slightly from the end of January (41.97 per cent), according to Theeraj Athanavanich, bond market adviser of the Public Debt Management Office of the Finance Ministry.

 

Source: http://www.nationmultimedia.com/news/breakingnews/30312146

 

-- © Copyright The Nation 2017-4-12

[clockman]

One day, somebody will have pay to the piper!

[trainman34014]

They should join the EU; they are good at arranging loans for basket cases !

[KhunBENQ]

3 hours ago, trainman34014 said:

They should join the EU; they are good at arranging loans for basket cases !

Better not, their 42% debt is substandard (would be about the smallest dept of all EU countries)

Greece about 170%.

 

USA about 100%.

[midas]

15 minutes ago, KhunBENQ said:

Better not, their 42% debt is substandard (would be about the smallest dept of all EU countries)

Greece about 170%.

 

USA about 100%.

Japan about 240 % . That will have a domino efffect around the world when it folds.

[12DrinkMore]

11 hours ago, midas said:

Japan about 240 % . That will have a domino efffect around the world when it folds.

1.  It bears no interest.

 

2.  A large chunk is owned by the BoJ.

 

There is no danger of it folding. The BoJ will keep on monetizing it.

[Ulic]

11 hours ago, KhunBENQ said:

Better not, their 42% debt is substandard (would be about the smallest dept of all EU countries)

Greece about 170%.

 

USA about 100%.

 

11 hours ago, midas said:

Japan about 240 % . That will have a domino efffect around the world when it folds.

As I understand it Japans debt is held by Japanese citizens so no telling if it would

have the domino effect another country's default  would have or how high it would have to

get with zero to negative government bond yield.

[PatOngo]

And the solution........................just keep borrowing!

[robblok]

11 hours ago, KhunBENQ said:

Better not, their 42% debt is substandard (would be about the smallest dept of all EU countries)

Greece about 170%.

 

USA about 100%.

Please don't get in the way of the Thailand bashers with real facts. Never mind that the UK has a 92% debt to GDP

and the Dutch around 65% (nicely done)

Edited April 13, 2017 by robblok

[simoh1490]

If my math is correct, six trillion baht broadly equals 180 billion USD, about the same amount the BOT holds in foreign currency reserves therefore there is no debt as such,.

[jadee]

21 minutes ago, 12DrinkMore said:

1.  It bears no interest.

 

2.  A large chunk is owned by the BoJ.

 

There is no danger of it folding. The BoJ will keep on monetizing it.

Both points are true, but government rates have only been held at zero because most of the investors are Japanese retirees and have been okay with this. If you look at the 2010 census and the 2015 one, the population shrunk by over a million people - who will replace these investors? There will obviously be a tipping point at some time in the future where retirees are overtaken by other investors such as US hedge funds who won't be so accommodating, perhaps leading to a full-blown solvency crisis. 

[worgeordie]

Whom is owed  all the World's debt ,I suppose China holds a big chunk 

of the U.S debt, others ?,  it seems if you have savings ,and no debt ,you

act responsible,dont spend more than you earn,you are definitely in the

minority in today's World ,where everything seems to help those in debt,

low interest rates.

regards worgeordie

Edited April 13, 2017 by worgeordie
add on

[jonclark]

I am not an economist. But if all the countries of the world combined owe in debt more than their combined GDP (albeit at different % ratios. ) Then it seems that the entire global system is built on the principle of accruing debt.

 

I dont get how the world can owe more than it can produce. Its a man made juxtaposition that defies logic.

[Peterw42]

The term "public" debt seems to refer to government debt. Does that include somchai's pickup truck, aeon card,  and moblie phone contract ? ie: Private debt. 

[robblok]

6 minutes ago, Peterw42 said:

The term "public" debt seems to refer to government debt. Does that include somchai's pickup truck, aeon card,  and moblie phone contract ? ie: Private debt. 

No this is not included, they are only talking about government here. 

[cloudhopper]

28 minutes ago, jonclark said:

 

 

I dont get how the world can owe more than it can produce. Its a man made juxtaposition that defies logic.

Because credit brings consumption sooner than using retained earnings would otherwise permit. It is logical but not sustainable lol....most will  be 'getting it' soon too...

[jonclark]

1 hour ago, cloudhopper said:

Because credit brings consumption sooner than using retained earnings would otherwise permit. It is logical but not sustainable lol....most will  be 'getting it' soon too...

so if credit drives consumption which in turn drives debt. The solution is to drastically reduce consumption. How would that affect the national and international economics.

 

 

[12DrinkMore]

2 hours ago, jonclark said:

I am not an economist. But if all the countries of the world combined owe in debt more than their combined GDP (albeit at different % ratios. ) Then it seems that the entire global system is built on the principle of accruing debt.

 

Indeed, debt is essential to making the world's finance flow. The whole edifice is built on swapping IOU's and only holds up as long as the IOU's remain credible and likely to be paid back. Hence the rating agencies.

 

On the other side of every bit of debt there is a corresponding asset.

 

Example, you borrow 1,000 from the bank. You now owe the bank 1,000 which is simultaneously marked up as an asset on the bank's balance sheet.

 

Example, your bank account shows a balance which is a debt owed to you by the bank. There is a corresponding asset in the bank supporting it, which is likely to be a loan taken by somebody else or maybe a bit of vault cash.

 

2 hours ago, jonclark said:

I dont get how the world can owe more than it can produce. Its a man made juxtaposition that defies logic.

The idea is that it is not all paid for annually, but over a long period of time. If you borrow GBP 500,000 for a toilet in London with a salary of 50,000 you have leveraged your salary by 10, but will pay back the loan over 30 years.

 

However, sovereign debt in the sovereign currency is not an issue, and, if the bankers and politicians were honest, is not intended to be repaid, but is rolled over constantly. Government bonds are an essential financial instrument. They provide a guaranteed place for large institutions to park huge sums of money.

 

Ignoring the QE, if a government issues a bond to fund a deficit it has done three things.

 

1. Issued an asset in the form of a bond into the private sector, which can be traded.

 

2. Spent the same amount of money into the economy on goods and services.

 

3. Net increase in the wealth of the private sector.

 

There is an issue if the interest paid on the bonds becomes too high. Then it snowballs.

 

Compared to taxes

 

1. Taxes take money out of the pockets of the population.

 

2. Spend it back into the economy  on goods and services.

 

3. Not net increase in the "wealth" of the private sector.

 

Private debt is the big issue, as if it is not repaid, the banks go insolvent. Hello bailouts.

 

 

 

[midas]

4 hours ago, 12DrinkMore said:

1.  It bears no interest.

 

2.  A large chunk is owned by the BoJ.

 

There is no danger of it folding. The BoJ will keep on monetizing it.

yes but only as long as there is confidence in Japan

by the way have you checked the latest news on Fukishima ?

[jerojero]

Heck, why don't we buy 10 submarines! And maybe 10 new high speed rail lines. Someone in future will pay for it all, I'm sure.

[Stargeezr]

I wonder if part of this debt is why the hospitals have no money, or cannot do any upgrades and charge so much to

the patients that have to stay in the hospital.  Just glad that Thaland does not hae the debt loads that some

countries in Europe have. Greece, sounds like a total loss, and I hear that Italy Is in bad shape as well.

Carry on Thailand.

Geezer

[simoh1490]

6 minutes ago, Stargrazer9889 said:

I wonder if part of this debt is why the hospitals have no money, or cannot do any upgrades and charge so much to

the patients that have to stay in the hospital.  Just glad that Thaland does not hae the debt loads that some

countries in Europe have. Greece, sounds like a total loss, and I hear that Italy Is in bad shape as well.

Carry on Thailand.

Geezer

I seriously doubt it, the debt problem at public hospitals is very similar to the UK and the NHS, a substantial ageing population is placing strain on poorly managed and inadequate budgets.

[Scott]

An inflammatory post has been reported and removed.