How ironic… We are amid a full blown global crisis… governments around the world are all doing the same mistakes (inane “stimulus” or “bailout” plans) digging their own grave… and Thailand of course is following exactly the same path, with our glorious Oxford educated Prime Minister… but guess what… the 1997 Crisis is still there ! 😉
You must be thinking : TC is going loco. But check this striking piece of thai ingenuity.
The Public Debt Management Office says it remains uncertain whether lingering damage from the 1997 economic crisis should be the responsibility of the state or the Bank of Thailand.
The government is considering pushing for a legal change that would shift debt service costs for losses incurred during the crisis back to the central bank to help free up more funds from the budget for immediate stimulus and investment programmes.
The central bank’s Financial Institutions Development Fund incurred liabilities of 1.4 trillion baht during the crisis for its bailout of creditors and depositors of ailing banks and finance companies.
The liabilities have been restructured over the past several years through government bond issues. While the central bank is responsible for ultimately paying down the principal debt, the Finance Ministry must carry the interest cost of the bonds. […]
Carrying costs for the liabilities are as high as 60 to 70 billion baht per year for the government, an expense item that Finance Minister Korn Chatikavanij has stated he wants to bring down to help free up funds for other programmes. […]
The liabilities have been split into three lots, with 500 billion baht in the first lot to be paid down from annual profits generated by the central bank. Two other lots, of 112 billion and 776 billion, would be paid through returns from the central bank’s general accounts.
From 1997 to 2007, however, the central bank has paid down just 31.6 billion baht for the first lot of 500 billion baht in debt. (Bangkok Post)
Yes ladies and gentlemen… They didn’t solve the 1997 Crisis… they did like France in the 90s, Japan in the 90s, USA in the 80s … they just moved the dirt UNDER THE CARPET.
But the dirt is still there. Of course. Even 10 years after. And those morons are now fighting like children…
The current government is so deeply into economic shit and so totally void of common sense, and so totally full of pathetic Frankenstein ministers… and so desperately looking for cash to finance its inane policies... that it wants to give the pile of dirt to… the Bank Of Thailand.
The idea that BOT’s “profits ” could solve the issue is utterly grotesque… The last time the BOT published its financial results… they were not very good (read here). 😉
So to summarize : the BOT can’t pay. The government can’t pay. So the debt is still there… interests are running… Exactly at the time when the government throw more cash on the current crisis… and needs to borrow more.
The 2008-20XX Great Global Crisis has just begun… but Thailand is still talking about 1997…
Abhisit is trapped.