DPM:No problem for Thailand’s public debts

BANGKOK, June 16 (TNA) - Thailand’s public debt will not turn to a debt crisis, caused by impacts from the ongoing eurozone crisis affecting several member countries of the European Union (EU) currently, as the current European debt woe is not expected to severely affect the global economy like the so-called hamburger crisis in the United States in 2009. Deputy Prime Minister and Finance Minister Kittirat Na-Ranong indicated during a weekly broadcast of Prime Minister Yingluck Shinawatra Saturday, while Greek voters prepare to go to the polls tomorrow to elect their new government, several EU members are facing economic problems and the rest in the world, including Thailand, are preparing to solve the problem. According to the deputy premier, Thai government agencies, including the Finance Ministry, the Bank of Thailand (BOT) and the National Economic and Social Development Board (NESDB), are coordinating closely in monitoring developments in the eurozone. The deputy premier acknowledged that Thailand’s public debt now stands at around 4.2-4.3 trillion baht, or an equivalent to only 40 per cent of the country's gross domestic product (GDP), and that the Thai government has a strict financial discipline to ensure that it does not exceed 60 per cent of the country's GDP. The deputy premier, who heads the government's economic team, said that the Thai economy mainly depends on exports, domestic investment and the service sector, especially on tourism, while the European financial crisis might affect Thai economy but it should be at the minimal level, insisting that the Thai government has maintained the country's export growth this year at 15 per cent and national economy growth at 5.5 per cent. Meanwhile, the Thai Finance Ministry plans to propose to the Cabinet to extend the government protection period for people's deposits amounting 50 million baht per account to an indefinite period, reasoning that any change in people's saving deposits amid the vulnerable world economy presently would erode public confidence. The move comes at a time when the protection is to gradually reduce to the maximum of only one million baht per account as of August 11, 2012. (TNA)