Pattaya Daily News

25 March 2009 :: 09:03:09 am 38710

Bankers Back Government?S Plan To Raise State Borrowing

BANGKOK, March 25 The government's plan to raise the state borrowing ceiling to bring more money to stimulate the economy deserves support while the country's economy is in the doldrums, according to top bankers.
Advertise Here

Krung Thai Bank president Apisak Tantiworawong said it is necessary for the government to do that because the economy is in recession.

Should the government fail to boost spending, he said, it is difficult for the economy to recover.

Simultaneously, the government’s move to seek offshore loans will help improve liquidity in the country.

Following the prediction by Deputy Finance Minister Pradit Phatraprasit that revenue collections for Fiscal 2009 will be less than targeted by Bt200 billion, Mr. Apisak said the government might need to seek more loans to jumpstart the economy.

As of the end of December 2008, Thailand’s public debts totalled Bt3.47 trillion or 38.13 per cent of the gross domestic product (GDP).

Mr. Apisak indicated the policy interest rate cut by the Bank of Thailand would help reduce the private sector?s borrowing cost only.

It would not bolster the investment expansion because many companies in the business sector had already reduce the production capacity.

Kasikornbank president Prasarn Trairatanaworakul said he agreed with the government’s plan to increase the borrowing ceiling.

Since the country’s economy is likely to experience negative growth, it is necessary to find measures to stimulate it. Otherwise, it would impact employment by reducing the number of jobs. (TNA)

Reporter : PDN staff   Photo : Internet   Category : Thailand News

Comments in News


    
CAPTCHA Image
*

The messages you read here are opinions from the public and posted into the Forum automatically. The systems owner is not responsible for any content in the Forum or any comments posted. There is no proof that the contents posted are genuine or not, even if the name of the poster is real, th erefore, please use common sense when reading the Forum. If there are topics which are against the law or immoral, please contact webmaster@pattayadailynews.com