New minister introduces grass roots-based economic stimulus measures

BANGKOK, August 26 (TNA) - Thailand's new Finance Minister Apisak Tantivorawong says he will, next week, seek the Cabinet's approval of an economic stimulus package, including soft loans directed to the grass roots through their village funds and small community-based projects. Apisak announced the policy at an annual academic seminar of his ministry's Fiscal Policy Office (FPO), held in Bangkok on Wednesday, noting that the new economic stimulus package is aimed mainly at increasing the grass roots' purchasing power. If the proposed economic stimulus is approved by the Thai Cabinet, Apisak elaborated, the Government Savings Bank (GSB) and the Bank for Agriculture and Agricultural Cooperatives (BAAC) will be assigned to lend to village and community funds without interest or with low interest rates and the funds will then lend to villagers who are their members with annual interest rates of lower than 5 per cent. Apisak stressed that borrowers must spend the new loans to support their careers and are prohibited from using the money to repay their old debts. According to the new finance minister, the money will reach villagers faster through their village and community funds and the quick money injection is considered necessary because the local grass roots now have low purchasing power due to a fall in the prices of farm products and impacts from drought. The new finance minister revealed that the government also plans to inject money through small investment projects with quick implementation so that the money is directed to local small-scaled contractors, aimed at creating jobs in communities and stimulating trade in construction materials and related products. Besides, the Thai government plans additional privileges for local investors who speed up their projects supported by the Board of Investment of Thailand (BOI) and a tax amnesty, after which targeted groups of taxpayers can start paying taxes again, leading to more government revenues in the future. (TNA)