Loan bill creates debt for next generations

Published: 20/06/2009 at 01:38 PM
Online news: Breakingnews

The government’s bill empowering the Ministry of Finance to seek 400 billion baht loans is a creation of debt burden for next Thai generations, former key member of the now defunct Thai Rak Thai party Khunying Sudarat Keyuraphan said on Saturday afternoon.

Khunying Sudarat admitted that she well understood that the government now has no money to mobilize the economy, but it must not forget that seeking loans means putting more loads on the people. The people’s children will have to pay for the debts.

“The newly born baby now has to carry a debt burden of more than 100,000 baht each. In fact, the government should refrain from creating more debts and seek loans only when it is really necessary”, Khunying Sudarat said.

The banned politician called the government to pay more attention to help poor farmers and small and medium-scale manufacturers. The country’s agricultural structure should be adjusted to strengthen the sector. Meanwhile the SMEs who are now facing the problem of liquidity shortage must be provided with proper assistance.

The government’s plan to acquire a huge amount of loans makes banks keep their liquidity for the government as granting loans to the government has no risk. The Ministry of Finance should step in to oversee this problem.

About the author

Writer: BangkokPost.com

Keep this article in your social bookmark:

Latest stories in this category:

Share your thoughts

For more candid, lengthy, conversational and open discussion between one another, use our Forum

Report objectionable comments click here. Include: discussion #, commenter name, comment date / time as it looks on the page. Example: discussion 15: 09/01/2009 at 10:00 AM.

Fox

Discussion 4 : 20/06/2009 at 10:30 PM4
the slavery still exists in thailand , the grass root and workers works and the elite exploit the money .No one of the elite keeps his capitals in thailand. the most weak ones move their money to Hong Kong, that's why they are regular visitor to it ,as pretext they say we go shopping !!!
Richard

Discussion 3 : 20/06/2009 at 09:44 PM3
Let's be very clear here because the numbers are jumping around all over the place. It is not 400 Billion. That is just one tranche. The total amount that this Government is seking to borrow, both domestically and from overseas, to make up the shortfall in current revenue and to pay for their pet projects, is over 1.4 Trillion. Khun Suranand Vejjajiva's article published in the Bangkok Post on 19/06/2009 explains it all very well and very clearly.

1.4 Trillion is one years government GROSS income. That is like you or I borrowing a full years gross salary to fund our extravagent lifestyle over the next 2 years, even though we are currently spending more than we earn. To be paid back plus interest (and foreign currency exposure) who knows when.

Madness.
Joe the Drinker

Discussion 2 : 20/06/2009 at 02:50 PM2
LOL…this is how Thailand works, the elite control the money; they don’t give a hoot about future debt as they are not the ones who must re-pay…but their BILLIONS are hidden nice and safe in the banks with NO exposure

Until the average Thai wake's up and does something YOU will be debt slaves forever...exactly where "they" want you
Red Capitalist

Discussion 1 : 20/06/2009 at 02:37 PM1
"...granting loans to the government has no risk"?!?

Loan bill creates debt for next generations