Prime Minister Yingluck Shinawatra has insisted that the draft royal decree to authorize the transfer of the Financial Institutions Development Fund’s (FIDF) liabilities to the Bank of Thailand (BoT) will not affect national reserves.
According to the Premier, if the debts are not transferred soon, the government will not be able to seek loans needed for the sustainable water management projects set for next year, adding the water management project will definitely boost investors’ confidence, but will at the same time expand the ceiling of public debts; therefore, the nation needs the decree to maintain the government’s financial status so that it could ask for more loans.
Ms Yingluck has insisted that her government will not touch the national reserves.
Meanwhile, Democrat MP Korn Chatikavanij expressed his concerns over the draft royal decree, as the BoT would have to produce more cash or lay its hands on the national reserves; implying the government’s intention to use the money for its unnecessary populist policies.
He added that the move would damage people’s confidence in the government’s handling of the country’s finance.