Thread: Thai finance min says can borrow 800 bln baht domestically

Thai finance min says can borrow 800 bln baht domestically

SINGAPORE, May 7 (Reuters) - Thai Finance Minister Korn Chatikavanij said on Thursday the domestic market will be able to absorb the government's 800 billion baht borrowing need for its economic stimulus plan and fiscal deficit.

Thailand's cabinet approved plans on Wednesday to borrow that amount between now and 2011 as the government looks to bolster the economy from the global downturn.

"There's not much concern we can raise the money domestically without impacting significantly on the yield curve," Korn said at an investment seminar in Singapore organised by Bank of America Merrill Lynch.

(Rreporting by Nopporn Wong-Anan and Kevin Lim; Editing by Neil Fullick)

iii.co.uk

Court to rule on loan decree on June 3
26/05/2009

The Constitution Court will announce its ruling on the constitutionality of the executive decree authorising the Finance Ministry to seek 400 billion baht in loans on June 3, Finance Minister Korn Chatikavanij said on Tuesday.

Mr Korn said the decision was urgently needed.

The 7.1-per-cent contraction in the gross domestic product (GDP) in the first quarter showed the economy was clearly in a critical condition, he said.

If the government's economic stimulus plan could not be implemented promptly, there would be more economic problems.

He said the government was ready to clarify all the details of different investment projects in the parliament after the court gave its decision on June 3.

He expected it would rule in favour of the government.

The opposition might have a hidden agenda in seeking a ruling on the decree, Mr Korn said.

He demanded the opposition explain its decision and propose alternatives to solving the economic crisis.

"In this kind of economy, who would say that the problem is not urgent and I don't know what the opposition is thinking.

"If the opposition sees the problem as not urgent, they should come up with constructive suggestions without obstructing the government," the minister said.

Chiang Mai MP of the Puea Thai party Surapong Towichakchaikul admitted the government would probably win the case.

He said the opposition wanted to point out that there was no urgency which required the loans be authorised by decree, rather than by normal procedure. He claimed the financial figures in the executive decree were inaccurate and unclear.

bangkokpost.com

No problem, just knock on the doors of a few tuk Tuk drivers and the money will flood in, who the fvck does he think he's kidding?

Sounds incestuous.

PM: govt needs Bt400 bln in loans
31/05/2009

The government would quickly ask for the Senate's and MPs' approval on the draft executive decree authorising the Finance Ministry to borrow 400 billion baht if the Constitution Court rules that it is constitutional, Prime Minister Abhisit Vejjajiva said.

He said on the 'Having Confidence in Thailand with Prime Minister Abhisit' show which was pre-recorded on Saturday that the government would hold an extraordinary parliarmentary session in mid-June if the court rules in favour of the proposed loan decree on Wednesday.

He said the potential 400 billion baht in loans would be used for strengthening the economy and investing in urgent projects such as double rail tracks and irrigation projects.

Business competitiveness would also be enhanced, he said.

He said the government would use its money to create jobs for 1.5 million to two million people, and believed the Thai economy would recover quickly.

He said the government had worked for five months and the top three issues it must address were eradicating narcotics, solving the southern unrest and suppressing corruption.

bangkokpost.com

needs

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Thai court upholds govt decree for stimulus loans
Wed Jun 3, 2009 1:35am EDT

BANGKOK, June 3 (Reuters) - Thailand's Constitutional Court upheld on Wednesday the use of an executive decree empowering the government to borrow 400 billion baht ($11.7 billion) from domestic banks to boost the country's ailing economy.

The nine judges said in a unanimous ruling that the decree was in line with the constitution and "an urgent matter for the country's economic security".

(Reporting by Chalathip Thirasoonthrakul; Writing by Kittipong Soonprasert; Editing by Martin Petty)

reuters.com

surprise .............

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40 senators threaten to foil loan laws
13/06/2009

A group of 40 senators have agreed that they would not vote in favour to the 800 billion baht loan seeking bill and executive decree, if the government fails to clearly clarify their details, Warin Thiamcharus, a designated senator of the group, said on Saturday.

“If the government can not explain why it needs to urgently seek the loans. the two laws will definitely be rejected by our group,” Mr Warin said, adding that otherwise the money will be used mainly for financing the populist policies of the coalition government.

Several mega-projects of the government, such as the 64 billion baht NGV buses leasing project, had led to a question about their transparency among general public, the senator said.

It was considered that the ruling Democrat party is now trying to share benefit (from the state budget) among coalition partners.

Senators in his group have to protect the interest of the country.

bangkokpost.com

It was considered that the ruling Democrat party is now trying to share benefit (from the state budget) among coalition partners.

so the PM was right when he said things where returning to normal

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Parliament okays govt’s foreign loans
17/08/2010

The joint sitting of senators and members of parliament on Tuesday approved the government’s plans to get loans from the World Bank and the Asian Development Bank to pay for economic stimulus projects, reports said.

The joint meeting, chaired by parliament President Chai Chidchob, voted 315 to 73, with 11 abstentions, in support of the government’s plan to seek a US$1 billion loan to finance projects under the public sector reform development policy from the World Bank.

The senators and MPs also voted 314 to 73, with 11 abstentions, to allow the government to acquire a $300 million loan from the Asian Development Bank for its capital market development programme, the reports said.

bangkokpost.com

this is good news, we might expect an easing on the THB eventually