Shuffling deck chairs with debt
Transferring over one trillion baht between the government's rescue agency and the central bank has left taxpayers with an unfair burden
The 1997 financial crisis was rooted in speculative excess and financial alchemy through the boom years of the 1990s. During a bubble, money comes fast and easy. And when the bubble bursts, it's those who are last to leave that are saddled with the costs.
In this case, it's the Thai taxpayer who is still shouldering the burden, to the tune of 1.14 trillion baht. Even by the most optimistic estimates, it may take 25 to 30 years to clear this debt, which overall accounts for nearly 25% of the country's entire public debt.
The bailout costs from the 1997 crisis have returned to the headlines in recent weeks after the government announced that it would shift the debt from the Finance Ministry to the Bank of Thailand in a bid to free up funds to finance new water management investments and spending programmes.
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About the author
- Writer: Parista Yuthamanop
- Position: Writer
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