A “rescue package” of 15 % of Thailand’s GDP ? !

After “let’s devaluate the THB to boost exports“, here is the thai version of “the rescue package”… A very thai version actually. Ready ?

The government has set aside a budget of 1.22 trillion baht to cushion the impact of the financial meltdown in the United States and Europe, Deputy Prime Minister Olarn Chaipravat said yesterday.

The fund was among a raft of measures unveiled by the deputy prime minister in the government’s first weekly address to the public on the NBT channel.

It said about 450 billion baht would be offered in the form of credit to small- and medium-sized enterprises and small-scale farmers, and another 110 billion baht to shore up the plunging Stock Exchange of Thailand.

He claimed that the economy would grow by 4% next year if the latest steps to stimulate the economic pay off.

The housing mortgage crisis in the US, which later spread to Europe, forced the Bank of Thailand to scale down growth projections to 4.3-5% for this year and 3.8-5% next year.

Mr Olarn confirmed that the injection of funds to prevent massive consumer credit defaults would not cause a budget deficit because most of the money would come from the private sector, banks and state enterprises. (Bangkok Post)

1,2 trillion THB ??? !! That would be roughly 15 % of the GDP of the country (2007) ! And that”s 80 % of the total government’s revenues (for the fiscal year 2009) !

That would be huge.

And it’s astonishing that it was -apparently- announced by the “deputy prime minister”… on a sunday.

But let’s go deeper into the Rabbit Hole…

First, they tell us that 1,2 trillion THB are “budgeted”. Then, that this amount won’t affect the budget deficit… because this money would be -gently and politely of course- given by private companies, banks and state companies !!! 😉

Those 1200 billions THB simply do not exist.


Now I understand why they’ve announced this grotesque “package” on a sunday. It’s because it’s a joke. Just another joke from a few little men who read each morning the translation of the Wall Street Journal for retarded children…

Olarn is a bozo. And the reporters at Bangkok Post even worse (but at least, they do not pretend to run the country).

3 Responses to “A “rescue package” of 15 % of Thailand’s GDP ? !”

  1. 1 chinesethai 28 October 2008 at 2:49 am


    Olarn Chaiprawat is not different from Suchart Tadathamrongvej. They both made livelihood by sitting in numerous boards of director in SOEs and funneled non-disclosure information to ShinCorp.

    So he was rewarded a ministerial position from London.

  2. 2 Patiwat 28 October 2008 at 6:17 am

    Hrm. So much for Wharton/MIT education.

  3. 3 Rockderk the Great 28 October 2008 at 9:25 am

    That’s scary. Could this monster package be a hint of a future free-for-all where all the pigs can simultaneously feed at the trough while pretending they’re doling it out responsibly? I mean either way the money -if it exists at all- is toast if this current bunch of invertebrates has anything to do with it.

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Thailand Crisis

Coup, Economic slowdown, Terror In the South... The situation is worsening in Thailand. Bumpy road like often before.

But this time, it's different.

The key to understand the present turmoil is the inevitable... succession of King Bhumibol.

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