In his comprehensive 30-minute address after the meeting, Srettha provided the project’s policy details, such as reasons, necessity, criteria, conditions and the key issue of the “funding source”. The plan is to drive the project with a loan of up to 500 billion baht, potentially through a royal decree or a loan authorisation law.
However, before the scheduled media briefing at 2 pm, an intense debate ensued during the committee meeting that commenced at 11.15 am. Central to the discussion was the legislation for borrowing, seen as a last-resort measure for securing the project’s funds.
Bank of Thailand (BOT) governor, Sethaput Suthiwartnarueput, was the first to voice dissent, raising concerns about the borrowing legislation. He said clarity was required on potential contradictions with the 1958 Currency Act, such as providing a clear source of funds and corresponding assets to support them.
The BOT also cautioned that an enactment of a loan authorisation law for up to 500 billion baht may heighten inflation risks in the upcoming year, and advocated caution and continuous vigilance.
More stories: https://bangkokone.news
Credit: http://nationthailand.com
