Government easily wins 400 billion baht loan approval

The House passed the bill to borrow 400 billion baht late Monday night, by a count of 248 for, 128 against, three abstentions and 17 refusing to vote.

Finance Minister Korn Chatikavanij is confident the extraordinary parliamentary session that began on Monday will approve the executive decree empowering the government to raise 400 billion baht in domestic loans to stimulate the economy.

Mr Korn said he believed the coalition partners will vote for the executive decree on Tuesday because the  money was necessary to restore and bolster the economy.

The minister was confident he would be able to satisfactorily clarify the government's budget for fiscal 2010 to coalition and opposition MPs.

He said he would explain how the planned expenditure and what benefits this would bring to the public.

Prime Minister Abhisit Vejjajiva also expressed confidence the decree would be approved and the government would be able to clarify all doubts.

The debate on loan decree began at 9.30am Monday and is due to  finish on Tuesday, with the total debate time set at 23 hours.

The debate was broadcast live, both on national television and radio.

The Finance Ministry announced it will make the first public offer of bonds by the end of this week if the decree is passed.

Public Debt Management Office director-general Pongpanu Svetraundra said Finance Minister Korn would finstruct his agency to raise the public debt ceiling in line with the executive decree.

The ministry would then offer its first lot of bonds, worth 30 billion baht, to the general public, Mr Pongpanu said.