Thai Cabinet approves Bt2t borrowing bill for infrastructure investment

BANGKOK, March 19 (TNA) - The Thai Cabinet has approved a bill authorizing the Ministry of Finance for a 2-trillion-baht borrowing to fund the government's new mega-infrastructure development projects over the next seven years. Deputy Prime Minister and Finance Minister Kittirat Na-Ranong told journalists on Tuesday that the bill will allow his ministry to borrow the money from both domestic and overseas sources to mostly sponsor new mega transport development projects to cut national logistic costs but increase transport conveniences and upgrade Thailand's transport networks, covering those linking with neighboring countries. Kittirat noted that the borrowing will depend mainly on domestic sources, as liquidity in the Thai financial sector still exceeds 2 trillion baht, and that the government will limit borrowing from overseas sources to prevent impacts from the ongoing appreciation of the Thai baht, which will, otherwise, cause excessive capital inflows. Kittirat insisted that, despite the 2-trillion-baht borrowing, Thailand's public debts should not exceed 50 per cent of the country's gross domestic product (GDP) and the borrowing would still maintain the nation's financial discipline. According to the deputy premier, the 2-trillion-baht debt is to be fully repaid within 50 years, but during the first 10 years, the Thai government needs to pay only the interest of 20 billion baht and from the 11th year onwards, the government is to also repay the principal plus the interest. Transport Minister Chadchat Sittipunt said the 2-trillion-baht sum will be spent on the new official investment projects under three strategies, including logistic development, transport connection with neighboring countries, namely high-speed train and port projects, and mass rail transit development, covering new electric train systems on 10 routes. Meanwhile, Minister Attached to the Prime Minister’s Office Varathep Rattanakorn revealed that the 2-trillion-baht borrowing bill will be submitted to the Thai Parliament President on March 20 and the Parliament is expected to start deliberating the bill next week. In another development, ex-agriculture and cooperatives minister Theera Wongsamut was elected, with the highest vote in a secret balloting, the new leader of the coalition Chart Thai Pattana Party at the party's Tuesday meeting, replacing 72-year-old Chumpol Silpacha, a former deputy prime minister and tourism and sports minister who passed away from heart failure in January 2013. Members of the Chart Thai Pattana Party also stood in a silence to mourn and pay respect to the late party's leader and chief advisor Major General Sanan Kajornprasart, who passed away from acute respiratory illness in mid-February 2013. (TNA)