Finance Minister clarifies Thailand reserves

BANGKOK, Feb 7 (TNA) -- Finance Minister Apisak Tantivorawong says the low level of the country’s treasury reserves at Bt74 billion was the result of effective management to minimize interest costs. At the end of December 2016, the treasury reserves stood at Bt74 billion, creating an uproar on the perceived shaky fiscal status. Mr Apisak said the treasury reserves level which was the balance between revenue and expenditures of the government was still in the range of Bt50-100 billion baht. He defended the low level of treasury reserves, saying the government saved nearly Bt2 billion in interest costs, which he said can be spent for other purposes. In the past, treasury reserves used to go up to Bt400 billion, but this government viewed that it was not necessary, he said. To maintain liquidity, Mr Apisak said the Ministry could borrow Bt80 billion baht. Meanwhile, Deputy Prime Minister Somkid Jatusripitak, who oversees economic affairs, echoed Mr Apisak’s comment. He said the government had expedited reimbursements for development projects. Treasury reserves in the past dropped to about Bt15-20 billion and caused no problem, he said, adding that this time around the issue became politicized. (TNA)