BANGKOK, 23 February 2012 -The private sector has reportedly showed sign of confidence after the Constitutional Court gave nod to the two executive decrees which will pave the way for the government to spend multimillion baht on flood prevention schemes.
The University of the Thai Chamber of Commerce’s Center for Economic and Business Forecasting Director, Thanawat Polwichai said many businessmen have now felt relieved as the government can finally implement its flood management plans. The first decree will allow the government to seek a loan of 350 billion baht to fund the water management programs.
Regarding the second decree, Mr Thanawat said it would assist the government in planning their budget for 2013. This one allows the Bank of Thailand to take responsibility of the 1.14 trillion baht in bailout debt from the Ministry of Finance.
He further added that it would also save the government 60 billion baht each year in its debt repayment to the Financial Institutions Development Fund. The two financial decrees, once in effect, will encourage bigger cash flow into the Thai economy as investors’ confidence has returned.