Thailand issues economic package to offset possible global financial crisis
Written by Writer on Monday, October 13th, 2008
Thailand issues economic package to offset possible global financial crisis
BANGKOK (TNA) - The Thai government on Monday issued a package of economic measures aimed at cushioning the possible impact from the looming global financial crisis, according to Deputy Prime Minister Olarn Chaipravat.
Essentially, six economic measures are to be implemented. The finance ministry has approved increasing the investment amount for retirement mutual funds and long term equity funds to Bt700,000 from Bt500,000, funding a Bt2 billion joint cooperation between the private sector and the Stock Exchange of Thailand (SET),
establishing a Bt10billion matching fund linking the SET and financial institutions, and encouraging major listed firms to buy back stocks amounting to Bt30 billion.
To ensure that businesses have enough revolving capital, the Bank of Thailand (BoT) will persuade commercial banks to extend a minimum loan of five per cent, equivalent to Bt400 billion, while state-run banks such as the Bank for Agriculture and Agricultural Cooperatives, and the Government Savings Bank would raise its lending amount to Bt1.15 trillion, up from Bt1.1 trillion earlier.
Economic-related ministers attending the meeting, chaired by Prime Minister Somchai Wongsawat, also agreed to boost income from exports and tourism by at least 5 per cent or up Bt300 billion and Bt60 billion respectively.
Regarding exports, the commerce ministry said it will expand markets in Asia, the Middle East, Australia, Africa and Latin America.
Another measure to strengthen the Thai economy is to accelerate disbursement of government expenditures, which have been raised by Bt180 billion during the current 2009 fiscal year from the previous fiscal year.
Additionally, speeding investment on the government-sponsored mega-projects, for which total investment has been raised to Bt350 billion from Bt250 billion, will help the economy.
Lastly, to enlarge cooperation between the Association of Southeast Asian Nations (ASEAN) and other countries, including Australia, Brazil, Russia, India, China, Japan and South Korea.
If these measures are implemented, the Thai economy this year and in 2009 is likely to sustain growths by 5.1 and 4 per cent respectively.
With the lingering global financial crisis, which originated in the US, Siripol Yodmuangcharoen, Permanent Secretary for Commerce, said world trade in 2009 is projected to grow less than 6 per cent and in order to achieve export growths in terms of value by Bt300 billion and Bt600 billion in 2008 and 2009 respectively, his ministry would expand commercial attache offices to 66 from 60 presently.
The commerce ministry will also cooperate with 44 honorary advisers to assist on trade and investment issues, said Mr. Siripol. (TNA)
