Kittiratt says megaprojects right solution for economy

Kittiratt defends big spending

Published: 16 Mar 2013 at 10.55
Online news:

The government's planned investments in infrastructure development megaprojects worth 2 trillion baht will help stabilise Thailand's economy, according to Finance Minister Kittiratt Na-Ranong.

Kittiratt: Credit rating upgrade a sign of growing confidence. (Photo by Pattarachai Preechapanich)

Mr Kittiratt, who is also deputy premier in charge of economic policy, said the recent upgrade of the country's credit rating to BBB+ by Fitch Ratings reflected growing confidence in Thailand's economic and political stability.

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banmebkk
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Discussion 18 : 18 Mar 2013 at 16.1218
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Credit Rating a sign of confidence but not when trillions in loans will be taken out, lets see how it would fare in 5-10 years time, especially if they don't have a single plan to counter the mounting debts.
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faranginkorat
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Discussion 17 : 17 Mar 2013 at 07.5417
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I was in the starch industry before retiring.
Upgrade of the freight rail system is desperately needed.
Every corn milling plant I ever visited in North America had a rail spur to it.
Never seen one to a tapioca plant here.
And despite the small amount of rail here, there is inadequate rolling stock to use the track that exists.
Containerizing starch and hauling containers on trucks 3-400 km to port is expensive.
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Bangon
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Discussion 16 : 16 Mar 2013 at 16.4016
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'...the [extra] borrowing [of 2,000,000,000,000.-Baht] would be phased so that debt remained below 50% of GDP...', could you please explain how 'phasing' could achieve this goal K Kittirat (maybe the maths, and financial principles, I was taught were wrong)? And '...the government would be able to repay the money within a few decades...'! So you do realize which additional burden these megalomaniac (TS!?) new projects will saddle Thai governments (the ones of the future, not PTP's?)up with, like 100Billion/year, EXTRA, in capital only, during 20years! PTP, is that good governance?
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Jules
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Discussion 15 : 16 Mar 2013 at 16.2815
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Imagine, just imagine 20% of this amount ... lots of people must be drooling right now
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barmine
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Discussion 14 : 16 Mar 2013 at 15.5814
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I like your your shirt Mr Kittiratt, beam me up Scotty.
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Bewildered
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Discussion 13 : 16 Mar 2013 at 15.4913
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"A debt ratio of 50% of GDP is not high and the government would be able to repay the money within a few decades"

I'm sure all the other countries he refers to said the same thing as their own debt went through the 50% threshold.

The government seem to treat the 60% ceiling as a target as opposed to a limit.
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sami
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Discussion 12 : 16 Mar 2013 at 15.4812
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THe sad thing is that every government says the same thing: we can pay this debt. In the end, another emergency comes along, and then another, and another; pretty soon, (within 50 years) the debt is not only not paid off, but has been compounded until there is no further ability to borrow.

Then the government and its ministers become deceptive and tell the people that the way out is monetary stimulus. Suddenly, the debt is of no concern, because in fact they are devaluing the currency to create a currency worth half as much or less in real terms. This means they can afford to pay back with worth-less bhat. Politics.
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tcr
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Discussion 11 : 16 Mar 2013 at 15.3511
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Thaksin has told them to sell this project heavily. It will help bring cash to the government, PTP and individuals. Corruption at it's worst. 30% siphoned off into hi-so's pockets.
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robins
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Discussion 10 : 16 Mar 2013 at 15.1310
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@Discussion 7 You mean something like the 50 kilometers of elevated highway from Chonburi into Bangkok when the existing road could have been widened for a fraction of the price?
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bluebottle
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Discussion 9 : 16 Mar 2013 at 15.119
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Why do I think this is a smoke screen though.
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Kittiratt defends big spending

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