Govt seeks more funds from Beijing for three projects including Bangkok-Kunming Highway

[Leef]

My understanding is China offers 7% on top of the total cost of project to sweeten the deal for those that can green light it. The bigger the loan the bigger the amount the politician can stash in an offshore account. With the big loan the country struggles to pay it back and takes out another loan again with 7%. Eventually the country defaults and China then owns the infrastructure.

[Longcut]

9 hours ago, neeray said:

Sounds like a similar concept to the USA with the China-held treasury bonds.

 

Thailand likes to go-it-alone except when it comes to borrowing money from China.

Maybe there's a side deal; we'll let you put the noose around our neck if you'll send us more tourists.

The US sells China bonds. They can be cashed in at any time. Most of the world buys bonds from the US. 

[malibukid]

16 hours ago, overherebc said:

Might get a good Chow Mein or Chop Suey soon then.

i have been trying to find a good almond duck

[malibukid]

2 hours ago, phkauf said:

With all the Thai and Chinese driving on the proposed road, it should be called The Death Highway. 

hi-so highway

[overherebc]

22 minutes ago, malibukid said:

i have been trying to find a good almond duck

All in hiding now they've heard the news.

[johnarth]

16 hours ago, greeneking said:

But we also hear that their huge foreign currency reserves are causing the problem high baht.

Why are they borrowing money at all?

because in 5 years they have spent all government money and are billions in debt so why not let the next government worry about it

[fforest1]

China and Thailand's real relationship......

 

 

[chilli42]

They are both naive and greedy.  They will end up mortgaging their country to their Chinese masters ... which is what the Chinese belt road initiative is all about.  One only need to look at Africa to see where this can end up

[sawadee1947]

19 hours ago, sammieuk1 said:

The Chinese tentacles will end up straggling the life out of here in years to come as the generals get more and more yuan blind 

......and there is the "Silk Road" for Europe, don't forget. Tentacles world wide.... ????

[Autonuaq]

Trump tried to buy Greendland and failed.

 

The Chinese help everyone to realize the dreams they have and by doing so the chinise dres become real by lending the collatoral comes for free.

 

Slowly the grip is tighting on Thialnd

[RotMahKid]

19 hours ago, greeneking said:

But we also hear that their huge foreign currency reserves are causing the problem high baht.

Why are they borrowing money at all?

The more I hear they need to borrow money, the more I think the whole figures and stories about foreign currency reserves are manipulated and fake, Als the money is already in other pockets

[phkauf]

3 hours ago, chilli42 said:

They are both naive and greedy.  They will end up mortgaging their country to their Chinese masters ... which is what the Chinese belt road initiative is all about.  One only need to look at Africa to see where this can end up

And Pakistan, Sri Lanka, Malaysia, Cambodia, etc.

[bizboi]

20 hours ago, Selatan said:

Foreign currency reserves are the assets of the central bank, not the government.

…the central bank IS the Governments bank, thats where reserves are held!!

[bizboi]

9 hours ago, smudger1951 said:

That is the paradox that gives away the lie. What is the state of the thai economy and where is it headed ?

thats a two part answer… so you have to state whether you mean for the rich or for the poor 

[Rimmer]

Several off topic posts have been removed including a flame and replies

 

[DrTuner]

On 9/9/2019 at 6:46 PM, overherebc said:

Might get a good Chow Mein or Chop Suey soon then.

For Chop Suey, or any "Chinese" food that's palatable you gotta go to US. They should do a San Francisco - Pattaya train instead.

[overherebc]

52 minutes ago, DrTuner said:

For Chop Suey, or any "Chinese" food that's palatable you gotta go to US. They should do a San Francisco - Pattaya train instead.

My first intro'to real Chinese food was there in the 70's. Ordered dishes I was used to in UK and when they arrived on the table they looked nothing like I had had before but they were really good.

First time I had soft shell crabs and I admit it took me a minute or two to stick the whole thing in my mouth, but, I couldn't get enough of them while I was there.

[Selatan]

11 hours ago, Srikcir said:

True but not really countering the question 'Why is the Thai government borrowing money at all?'

BoT has sought new laws (2015) that allow it to invest in higher risk public, government and corporate bonds - a debt instrument.

The proposed law would include (unknown if passed) investment in the newly created Sovereign Wealth Fund used to buy shares in Thai companies that would build and operate government infrastructure projects in Thailand!

So while BoT holds and manages the foreign reserves, it could indirectly make those funds available to the Thai government. If and when it does, the Public is unlikely to know.

How does a central bank obtain the foreign currencies to put into its foreign currency reserves in the first place? It has to borrow money to buy the currencies, usually by issuing its own bonds. What do you think the central banks often do with the currencies anyway? A big portion of it I believe would be invested in treasury bonds of other countries. The foreign bonds would generate an income but at the same time the local bonds that were issued to pay for the currencies would incur an interest cost. At the end of the financial year, the central bank might incur a loss or a profit due to this. Central banks often do this to prevent their local currencies from appreciating too fast.

Likewise, the government can do the same thing like the central bank if it needs foreign currencies to pay a foreign supplier. But if a foreign lender can give the government a loan at preferential rates and terms, taking it might be a better or cheaper choice.

[Selatan]

5 hours ago, bizboi said:

…the central bank IS the Governments bank, thats where reserves are held!!

The government's reserves and the central bank's reserves are two very different things. The government can only have reserves if it has been overtaxing the people. But if it is running a deficit budget, it's likely that it doesn't have any reserves.

[Denim]

Junta mantra :

 

Borrowing good.

 

Repaying .....not in our lifetime..

 

Why worry ....be happy.

[Dave67]

Thats handy you could an UBER from Bangkok to Kunming wait and return

[drgoon]

On 9/10/2019 at 6:31 AM, Thongkorn said:

Selling there Souls to the Devil.

their....  yeah yeah I know, what he said

[DUNROAMIN]

23 hours ago, Jimdandy said:

And with the money will come more influence over culture and global expansion of Beijing's philosophy. Isn't the lesson in Hong Kong and Taiwan enough to figure it out yet?

Don't be silly, Thailand learn from other countries, like trying to teach an old dog new tricks. The only thing Thailand government learns is how to line they pockets with more money, they really don't give a sh%%$#@^&t about their country.

[Ketyo]

If people wanted to live in China they would go to China. But they don't because it's a horrible place. The Chinese leave China. Do'n't let the Chinese turn the rest of Asia into China. It will be sh*t.

[sandyf]

On 9/10/2019 at 8:58 AM, Expat Tom said:

Certainly, the people in charge of the government of Thailand are just plain stupid! They will merrily lead Thailand into the Chinese debit trap and finish ruining this country. Complete idiots....submarines? Need I say more. 

In December, I'm out of here. 

You mean like Hinkley Point and Bradwell, why do people blame Thailand for taking a leaf out of the UK's book.

[Burma Bill]

On 9/9/2019 at 7:19 PM, Reigntax said:

Thailand soon to be named South East China.

Could become known as "Chithai-land" like "Chinbodia" across the border!

[chainarong]

Into the clutches of evil went the blind Thailand.

[DrTuner]

1 hour ago, Burma Bill said:

Could become known as "Chithai-land" like "Chinbodia" across the border!

Chailand, of course. Tee growers will be happy.

[SOUTHERNSTAR]

Okay so you drive to China and then what. Foreigners are discouraged to drive from the outside China and they drive on the right side which makes Thai vehicles more dangerous.

Sent from my SM-A730F using Thailand Forum - Thaivisa mobile app

[SOUTHERNSTAR]

The Chinese will not come down to Singapore on bicycles like the Japanese. They will have access to highways and high speed trains.

Might get a good Chow Mein or Chop Suey soon then.

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