Thai Government Scraps Plan to Transfer Debt to Central Bank
This article is for subscribers only.
Thailand’s government scrapped a proposal to transfer $35 billion of legacy debt from bank bailouts to the central bank and will instead seek to extract cash from commercial lenders to finance flood defenses.
“Transferring debts to the Bank of Thailand will be like printing money,” Finance Minister Thirachai Phuvanatnaranubala told reporters today after meeting Bank of Thailand Governor Prasarn Trairatvorakul. “The methods we are using must not affect fiscal and monetary discipline and must not hurt confidence among foreign investors and international agencies.”