Wednesday, May 2, 2007

The Nation: Finance Ministry starts first economic stimulus package

The Finance Ministry launched on Wednesday its first economic stimulus package worth Bt44.04 billion, aimed at helping small businesses and low income groups to access loans.

Measures to boost private investment and job creation are expected to follow soon.

Prime Minister Surayud Chulanont's interim government is facing growing public discontent over the economic slowdown as a result of sagging investors' and consumers' confidence.

The stimulus money will be distributed through staterun banks.

Directorgeneral Goanpot Asvinvichit said it would offer lowincome borrowers Bt5,000 each in order to prevent them using loan sharks, targeting 300,000 clients nationwide.

It will also provide loans for community enterprises worth about Bt1 billion.

Premium clients will also be offered more loans, while the bank will expand loans under its People's Bank scheme and for civil servants.

The GSB package will be launched at Money Expo 2007 in Bangkok from May 1013. The loans will be available at its branches from May 14.

GHB president Khan Prachuabmoh said it would offer mortgage loans of less than Bt1 million with a threeyear fixed rate of 4.99 per cent, down from 6 per cent.

Khan said the bank would coordinate with local authorities to provide housing loans for people upcountry on properties worth between Bt250,000 and Bt350,000. Buyers can also borrow about Bt300,000 if they want to build a house.

The GHB will increase its loans target to Bt95.5 billion this year from the previous figure of Bt90 billion, he added. New lending will start on May 8.

BAAC president Thirapong Tangthirasunan said it would increase new lending by Bt18.84 billion from its previous target. The new loans will target farmers who participate in biodiesel projects, small entrepreneurs, community enterprises and environment conservation.


These policies sounds exactly like the policies that Thaksin introduced. Wasn't he accused of spoiling the masses with these types of goodies?

Notice the change in tune in the use of propaganda:

Military government: Economic Stimulus

Thaksin government: Spoiling the masses with tax payer money.

Military government: Priming the pump and preventing an economic downturn.

Thaksin government: Acting fiscally irresponsible and bankrupting the country.

I have no problem with the government using Keynsian mechanisms to boost the economy, but the current government shouldn't condemn Thaksin for policies that they are now implementing.

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