Loan decree, if approved, will benefit overall economy

BANGKOK, June 16 (TNA) – The executive decree empowering the government to borrow Bt400 billion in domestic loans to stimulate the economy will benefit the overall economy if approved by Parliament, according to a top securities analyst.
 
Kongkiat Opaswongkarn, president of the Securities Analysts Association, said passing the loan decree, now being debated in an extraordinary session of Parliament, would bring a new funds into the country’s economic system.
 
The infusion would immediately benefit investment-related businesses such as construction and building materials. Once the economy expands, it would boost purchasing power and reactivate consumer-related businesses including retail and commercial banking.
 
However, he said, since it is a long-term investment project, the government must give priority to the transparent use of the loan.
 
Should there be any corruption in the loan-supported projects, it could undermine public confidence in the government.
 
“The loan decree, if approved, will bode well for the implementation of the 2nd economic stimulus package. However, the government must be careful and transparent in spending unless it wants the public feeling to be affected,” he said.
 
As the global economy is on the path of recovery led by the strong Chinese economic resilience, he suggested the Thai government to hold more discussions with the Chinese counterpart.
 
Currently, the Chinese economy has rapidly recovered and begun to enjoy robust growth again.
 
“Many countries count on the Chinese economic resilience to steer their economies. So, Thailand should neither overlook such an opportunity nor ‘miss the train’,” he said. (TNA)