Govt urges banks to ease credit

Published: 5/01/2009 at 11:35 AM
Online news: Breakingnews

Prime Minister Abhisit Vejjajiva on Monday was scheduled to meet the Bank of Thailand (BoT) to receive in-depth economic information to be used to revive the local economy, Deputy Prime Minister overseeing the economy Kobsak Sabhavasu said on Monday.

The government will not intervene in the foreign exchange policy but will help prevent it from fluctuating, Mr Kobsak insisted.

The deputy premier said a budget of 300 billion baht will be spent to boost the economy in the short-term and it will focus on stimulating the tourism sector, especially by drawing in more tourists from China. He said Prime Minister's Office Minister Virachai Virameteekul is responsible for this task.

Mr Kobsak said the government also planned to use a 20-billion-baht budget to organise economic seminars and find jobs for about 500,000 unemployed. He said the premier had a plan to hire those who already attended these seminars for 45 days to work in the field of administrative education in rural areas for six months.

On the meeting between Prime Minister Abhisit and the central bank, it was expected that the premier will urge commercial banks to release more credit into the system after they were concerned over the non-performing loans, causing a lack of liquidity.

According to the BoT, the Manufacturing Production Index (MPI) in November 2008 hit a 10-year low at minus-6.6 per cent while the export and tourism sectors plunged by 17.7 per cent and 22.4 per cent respectively.

The Gross Domestic Product (GDP) growth rate in the fourth quarter expanded zero per cent in comparison to the same period of 2007. When compared to the third quarter, the figure contracted 2.5 to three per cent.

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An orange shirt

Discussion 5 : 05/01/2009 at 09:59 PM5
As you have already said the initial bail out costs in the Usa was 250 billion but now it is over 775 billion. A 3 fold increase. Why are you so upset about a prime minister who made a statement based on improving confidence within a country that was on the edge of civil war and he has now increased the bail out by 3 fold as well. Please settle down and stop making sensational comment on something that is really well balanced. This PM is not getting carried away with the task ahead.
If you think he is so bad well I suggest you buy an underground bunker and wait for the world to end. He is only doing what every other country in the world is and that is governments are bailing out a capitalist system that needs social means of control.
Or in other words a socialist government controlling a capitalist market place. A possible solution is start talking about new forms of government that allow people to be convinced their need things they really dont so economies can generate constant positive growth. As well as having a board membership that controls this for the good of the people.
Lets look at China. A socialist government that has been able to take over 100 million people out of poverty and place them in the middle classes.A socialist government with a controlled marketplace to encourage GDP. Only a few thousand were killed for political means. Over 7 billion live like us
Controlled by a government we wish not to have enough intellect to enter or are to lazy to do so.
Ratana

Discussion 4 : 05/01/2009 at 04:35 PM4
With a budget of 300 billion baht; I wonder what is the percentage of the amount would actually go to the people of Thailand?

But I could see in the near future: the rich would be richers; because majority of the 300 billion baht would finally goto their personal overseas bank accounts.

the rich may include Mr Abhisit's Government, Supreme Court Judges, the senior officers of military coup and the police, and lastly PAD leaders.

Let see in th near future.
Bob

Discussion 3 : 05/01/2009 at 12:41 PM3

Obama initially said the US stimulus package would be $150-250 bn, but now they are estimating it to be over $775 bn. They realize that the economy is worse than expected, therefore are addressing the issue.

Yet all Thais can do is debate the other side, just because they are on a different side. The Thai economy will likely get even worse since we have 2 issues to address: the economy and the division of society.
ThaiToo

Discussion 2 : 05/01/2009 at 12:34 PM2
Tourists aren't stupid you know and when they see PAD on TV celebrating New Years like nothing happened, the same people that held 300,000 of them hostage, caused a 48% drop in the SET and is responsible for the 22% drop in tourism, I doubt they will be back.

Prime Minister Abhisit you promised that PAD will pay, they will face the music but the only one in jail is the man from Esan who wrongfully threw a rock at a Mercedes. If you don't follow through on your word then you should change your title from PM to BM (Bowel movement) because you're full of it.
David Brown

Discussion 1 : 05/01/2009 at 12:00 PM1
300 billion baht of taxpayers money.... where will it go?

the PPP government decided on 100bln... so why 300bln now?

part of the increase is need due to delays and damage caused by the senior military and the rich families and their agents the PAD ... maybe 200bln now...

and the extra 100bln is the payoff to the PAD private and military supporters for getting their slave government into power

the PAD said they were working to rid the government of corruption.... hahahahah, fooled a lot of people that went along and donated... hahahaha

Govt urges banks to ease credit