BANGKOK Thailand may use as much as a third of $49 billion in
foreign-currency reserves to help finance a 1.5 trillion baht plan to build
subways and other public works projects, a government adviser said Thursday.
The government needs other sources of financing for the $39 billion plan
besides tax revenue, Pansak Vinyaratn, the top adviser to Prime Minister
Thaksin Shinawatra, said on Business RadioThe appropriate level of the Thai
foreign-currency reserves should be at about $32 billion, he saidThailand
built up its reserves after speculators forced a devaluation of the baht in
1997, sparking the Asian financial crisisThe governing party, Thai Rak Thai,
won a record three-quarters of the seats in Parliament this week with
promises to create jobs by spending more on subways, roads and irrigation"To
reduce poverty and boost employment, the government needs to proceed with
investments in large infrastructure projects," Pansak said. "Foreign
currency reserves are too high and should be spent to boost economic
growth."
Thailand is not alone in seeking ways to use its foreign reservesIn India,
Montek Singh Ahluwalia, deputy chairman of the Planning Commission, in
November renewed his call for the country to spend part of about $129
billion in foreign-exchange reserves on public works. The money would
finance the building of ports, roads and bridgesAhluwalia said the
government should ask lawmakers to approve a plan to use $5 billion from
reserves in each of the next two yearsIn Thailand, the finance minister,
Somkid Jatusripitak, and other advisers are drafting economic policies and a
fund-raising plan for Thaksin's next four-year term, Pansak said"We've got
to see where the money will be spent to say whether it's good or bad," said
Kasem Prunratanamala, head of research at BNP Paribas Peregrine Securities
in ThailandForeign-currency reserves in Thailand were $48.7 billion as of
Jan. 28. They rose to a record $49.8 billion on Dec. 31Disaster relief for
resort area
Prime Minister Thaksin said the government might set up a property fund to
help finance the rebuilding of hotels and businesses in the resort area of
Khao Lak, the Thai region worst affected by the tsunami in DecemberThaksin
will oversee a government meeting in Khao Lak in Phangnga Province, about
790 kilometers, or 490 miles, south of Bangkok, on Feb. 19 to devise plans
for the area, he told reporters"It's not just about rehabilitating one hotel
or the other. It's the entire zone that needs rehabilitation," Thaksin said.
"If there are problems getting loans from banks, we may have to set up a
property fund."
Consumer confidence rises
Thai consumer confidence in January rose to a four-month high on optimism
that rising exports and the central bank's decision to keep interest rates
unchanged would help economic growth, a survey said ThursdayAn index
measuring consumer confidence about the economy rose to 90.9 last month, the
highest since September, from 89.3 in December, according to the University
of Thai Chamber of Commerce in Bangkok. The poll surveyed 2,232
respondents"A surging stock market will help support consumer confidence
because of rising wealth," said Usara Wilaipich, an economist at Standard
Chartered Bank in BangkokSee more of the world that matters - click here for
home delivery of the International Herald Tribune< < Back to Start of
Article
BANGKOK Thailand may use as much as a third of $49 billion in
foreign-currency reserves to help finance a 1.5 trillion baht plan to build
subways and other public works projects, a government adviser said
ThursdayThe government needs other sources of financing for the $39 billion
plan besides tax revenue, Pansak Vinyaratn, the top adviser to Prime
Minister Thaksin Shinawatra, said on Business RadioThe appropriate level of
the Thai foreign-currency reserves should be at about $32 billion, he
saidThailand built up its reserves after speculators forced a devaluation of
the baht in 1997, sparking the Asian financial crisisThe governing party,
Thai Rak Thai, won a record three-quarters of the seats in Parliament this
week with promises to create jobs by spending more on subways, roads and
irrigation"To reduce poverty and boost employment, the government needs to
proceed with investments in large infrastructure projects," Pansak said.
"Foreign currency reserves are too high and should be spent to boost
economic growth."
Thailand is not alone in seeking ways to use its foreign reservesIn India,
Montek Singh Ahluwalia, deputy chairman of the Planning Commission, in
November renewed his call for the country to spend part of about $129
billion in foreign-exchange reserves on public works. The money would
finance the building of ports, roads and bridgesAhluwalia said the
government should ask lawmakers to approve a plan to use $5 billion from
reserves in each of the next two yearsIn Thailand, the finance minister,
Somkid Jatusripitak, and other advisers are drafting economic policies and a
fund-raising plan for Thaksin's next four-year term, Pansak said"We've got
to see where the money will be spent to say whether it's good or bad," said
Kasem Prunratanamala, head of research at BNP Paribas Peregrine Securities
in ThailandForeign-currency reserves in Thailand were $48.7 billion as of
Jan. 28. They rose to a record $49.8 billion on Dec. 31Disaster relief for
resort area
Prime Minister Thaksin said the government might set up a property fund to
help finance the rebuilding of hotels and businesses in the resort area of
Khao Lak, the Thai region worst affected by the tsunami in DecemberThaksin
will oversee a government meeting in Khao Lak in Phangnga Province, about
790 kilometers, or 490 miles, south of Bangkok, on Feb. 19 to devise plans
for the area, he told reporters"It's not just about rehabilitating one hotel
or the other. It's the entire zone that needs rehabilitation," Thaksin said.
"If there are problems getting loans from banks, we may have to set up a
property fund."
Consumer confidence rises
Thai consumer confidence in January rose to a four-month high on optimism
that rising exports and the central bank's decision to keep interest rates
unchanged would help economic growth, a survey said ThursdayAn index
measuring consumer confidence about the economy rose to 90.9 last month, the
highest since September, from 89.3 in December, according to the University
of Thai Chamber of Commerce in Bangkok. The poll surveyed 2,232
respondents"A surging stock market will help support consumer confidence
because of rising wealth," said Usara Wilaipich, an economist at Standard
Chartered Bank in BangkokSee more of the world that matters - click here for
home delivery of the International Herald Tribune< < Back to Start of
Article
BANGKOK Thailand may use as much as a third of $49 billion in
foreign-currency reserves to help finance a 1.5 trillion baht plan to build
subways and other public works projects, a government adviser said
ThursdayThe government needs other sources of financing for the $39 billion
plan besides tax revenue, Pansak Vinyaratn, the top adviser to Prime
Minister Thaksin Shinawatra, said on Business RadioThe appropriate level of
the Thai foreign-currency reserves should be at about $32 billion, he
saidThailand built up its reserves after speculators forced a devaluation of
the baht in 1997, sparking the Asian financial crisisThe governing party,
Thai Rak Thai, won a record three-quarters of the seats in Parliament this
week with promises to create jobs by spending more on subways, roads and
irrigation"To reduce poverty and boost employment, the government needs to
proceed with investments in large infrastructure projects," Pansak said.
"Foreign currency reserves are too high and should be spent to boost
economic growth."
Thailand is not alone in seeking ways to use its foreign reservesIn India,
Montek Singh Ahluwalia, deputy chairman of the Planning Commission, in
November renewed his call for the country to spend part of about $129
billion in foreign-exchange reserves on public works. The money would
finance the building of ports, roads and bridgesAhluwalia said the
government should ask lawmakers to approve a plan to use $5 billion from
reserves in each of the next two yearsIn Thailand, the finance minister,
Somkid Jatusripitak, and other advisers are drafting economic policies and a
fund-raising plan for Thaksin's next four-year term, Pansak said"We've got
to see where the money will be spent to say whether it's good or bad," said
Kasem Prunratanamala, head of research at BNP Paribas Peregrine Securities
in ThailandForeign-currency reserves in Thailand were $48.7 billion as of
Jan. 28. They rose to a record $49.8 billion on Dec. 31Disaster relief for
resort area
Prime Minister Thaksin said the government might set up a property fund to
help finance the rebuilding of hotels and businesses in the resort area of
Khao Lak, the Thai region worst affected by the tsunami in DecemberThaksin
will oversee a government meeting in Khao Lak in Phangnga Province, about
790 kilometers, or 490 miles, south of Bangkok, on Feb. 19 to devise plans
for the area, he told reporters"It's not just about rehabilitating one hotel
or the other. It's the entire zone that needs rehabilitation," Thaksin said.
"If there are problems getting loans from banks, we may have to set up a
property fund."
Consumer confidence rises
Thai consumer confidence in January rose to a four-month high on optimism
that rising exports and the central bank's decision to keep interest rates
unchanged would help economic growth, a survey said ThursdayAn index
measuring consumer confidence about the economy rose to 90.9 last month, the
highest since September, from 89.3 in December, according to the University
of Thai Chamber of Commerce in Bangkok. The poll surveyed 2,232
respondents"A surging stock market will help support consumer confidence
because of rising wealth," said Usara Wilaipich, an economist at Standard
Chartered Bank in BangkokSee more of the world that matters - click here for
home delivery of the International Herald Tribune< < Back to Start of
Article
BANGKOK Thailand may use as much as a third of $49 billion in
foreign-currency reserves to help finance a 1.5 trillion baht plan to build
subways and other public works projects, a government adviser said
ThursdayThe government needs other sources of financing for the $39 billion
plan besides tax revenue, Pansak Vinyaratn, the top adviser to Prime
Minister Thaksin Shinawatra, said on Business RadioThe appropriate level of
the Thai foreign-currency reserves should be at about $32 billion, he
saidThailand built up its reserves after speculators forced a devaluation of
the baht in 1997, sparking the Asian financial crisisThe governing party,
Thai Rak Thai, won a record three-quarters of the seats in Parliament this
week with promises to create jobs by spending more on subways, roads and
irrigation"To reduce poverty and boost employment, the government needs to
proceed with investments in large infrastructure projects," Pansak said.
"Foreign currency reserves are too high and should be spent to boost
economic growth."
Thailand is not alone in seeking ways to use its foreign reservesIn India,
Montek Singh Ahluwalia, deputy chairman of the Planning Commission, in
November renewed his call for the country to spend part of about $129
billion in foreign-exchange reserves on public works. The money would
finance the building of ports, roads and bridgesAhluwalia said the
government should ask lawmakers to approve a plan to use $5 billion from
reserves in each of the next
two years.
In Thailand, the finance minister, Somkid Jatusripitak, and other advisers
are drafting economic policies and a fund-raising plan for Thaksin's next
four-year term, Pansak said"We've got to see where the money will be spent
to say whether it's good or bad," said Kasem Prunratanamala, head of
research at BNP Paribas Peregrine Securities in ThailandForeign-currency
reserves in Thailand were $48.7 billion as of Jan. 28. They rose to a record
$49.8 billion on Dec. 31Disaster relief for resort area
Prime Minister Thaksin said the government might set up a property fund to
help finance the rebuilding of hotels and businesses in the resort area of
Khao Lak, the Thai region worst affected by the tsunami in DecemberThaksin
will oversee a government meeting in Khao Lak in Phangnga Province, about
790 kilometers, or 490 miles, south of Bangkok, on Feb. 19 to devise plans
for the area, he told reporters"It's not just about rehabilitating one hotel
or the other. It's the entire zone that needs rehabilitation," Thaksin said.
"If there are problems getting loans from banks, we may have to set up a
property fund."
Consumer confidence rises
Thai consumer confidence in January rose to a four-month high on optimism
that rising exports and the central bank's decision to keep interest rates
unchanged would help economic growth, a survey said ThursdayAn index
measuring consumer confidence about the economy rose to 90.9 last month, the
highest since September, from 89.3 in December, according to the University
of Thai Chamber of Commerce in Bangkok. The poll surveyed 2,232
respondents"A surging stock market will help support consumer confidence
because of rising wealth," said Usara Wilaipich, an economist at Standard
Chartered Bank in Bangkok. |