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PM Prayut stresses legitimacy for using Social Security funds as loans


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PM stresses legitimacy for using Social Security funds as loans

 

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BANGKOK (NNT) - A recent proposal from the Prime Minister has been in focus after he ordered related agencies to study the feasibility of using Social Security funds as loans for investment. The Prime Minister has stressed that this idea must me thoroughly considered and comply with the law.

 

The government spokesperson Narumon Pinyosinwat revealed that the Prime Minister Gen Prayut Chan-o-cha has ordered the Social Security Office and related agencies to look into the feasibility of using cash available in Social Security funds. The agencies have been ordered to look into the legal feasibility of using the money to yield maximum benefits to social security benefit holders and the general public.

 

She said initial studies show the Social Security Fund Act BE 2533 does not authorize the SSO to lend the fund balance as loans, as such action will violate the objectives of the fund. The fact that the SSO is not recognized by the Bank of Thailand as a financial institute also forbids the office to legally offer any loans.

 

From these conditions, the SSO may use the fund balance in social investment projects, by depositing the loan balance in financial institutes who will be offering this balance as loans on their behalf. However, any of these procedures must be done carefully and in full compliance to the law and existing regulations.

 

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great idea - offer loans to those already up to their neck in debt

 

 

I suspect the real reason for this is finding a way to release government funds into the private sector - from there it will vanish into deep corrupted pockets without a trace

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3 hours ago, smedly said:

great idea - offer loans to those already up to their neck in debt

 

 

I suspect the real reason for this is finding a way to release government funds into the private sector - from there it will vanish into deep corrupted pockets without a trace

Robert Maxwell, owner of the Mirror group of newspapers stole £400 million from the Mirror pension funds back in 1991. He went for a cruise on his yacht and "fell overboard" during the night and wasn't missed until the morning. He was in deep doo doo and was facing at least 20 years in jail.

 

The Thai SSF is what it is and it is NOT the PMs piggy bank.

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17 hours ago, webfact said:

From these conditions, the SSO may use the fund balance in social investment projects, by depositing the loan balance in financial institutes who will be offering this balance as loans on their behalf.

Now, who has been a nice banker? Here, have a bone.

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17 hours ago, keith101 said:

The govt is supposedly sitting on a huge surplus so why would they need to do this unless of course the surplus isn't what they are saying it is ?

It comes from their own personal daily practices of sitting on millions in the bank but using other peoples money to purchase anything!

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1996 springs to mind. The IMF told the Bank of Thailand then to let the Thai Baht float freely which - of course - did not happen as Thais do not need alien advice. 1st July 1997 then came and the Bank of Thailand had no other choice but to let the Baht go - which triggered off the Asian Financial Crisis. Between February 1996 and June 1997 zillions of FOREX was purchased cheap (against few Baht); in spring 1998 then those FOREX got sold back into Baht. To give you an idea of the magnitude; Febuary 1996 you had to spend 23 Baht for 1 US-Dollar; two years later 1 US-Dollar would get 50+ Baht. The rest is mathematics and the titanic currency loss was shouldered by the Thai farmers seeing an increase of a chicken egg from 1 Baht to 3 Baht etc. 

Financial institutions went belly up; not one but a total of 56 out of 57. The Bangkok Bank of Commerce (remember that tremendous f“ç*%*“k up?) went South and the Indian (Rakesh or something) with a Canadian passport was crucified. Latter for good reason but all the Thai executives must still be hanging around on golf courses, massage parlours (for health reasons, of course) and enjoying life. 

Tapping a social security fund is a legal No No in most countries for the very reason, that neither the state nor private banks can fiddle around with the funds. There is also absolutely no monetary need for that; if the Bank of Thailand would ease all those medieval currency controls etc. then the Thai Baht would nosedive against most currency basket currencies. Commercial banks these days give you - if you are lucky - 1.75% interest per annum on fixed deposits; I remember days when you got 10% to 12% (even from reputable international banks). 

I paid into the mandatory  Thai Social Security Insurance for almost 30 years (cumulative hundreds of thousands of Baht). Upon hitting 60 years of age I was told that this is just for Khon Thai and alien are not entitled to benefits! Not that I need that money for survival but it shows you how things work. 

If the government or the banks get their little stinky sticky fingers into that till, then you can kiss that non-financial insurance institution a very big „Good Bye“. Be warned, the writing is on the wall in capital letters AND in Braille! 

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And this gets me think about something that happened with a previous minister.  Don't play with money that ain't yours. If the profits goes back to those who needs it then it's a good idea. But it isn't! Who's going to pay if a loss inquires? The reason you want to take money from this account is probably because there's missing from another. 

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4 hours ago, Curt1591 said:

Using Social Security money for other pet projects has worked out well in the States! ????

I'm not sure what you are implying other than an attempt at sarcasm.

The SS funds are borrowed by the government by issuing Treasury Bonds to the SS as collateral.

The US has never defaulted on its debt obligations for it T-Bonds. Under the Constitution the US must meet its debt obligations that are backed by US treasury bonds before any other government obligations. US Treasury bonds are in turn backed by the taxation of the government through congressional legislation. 

Historically, such outreach of funds from SS have served successfully to provide economic stimulus in a slowing economic growth period. 

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23 hours ago, keith101 said:

The govt is supposedly sitting on a huge surplus

With regard to Social Security it is not.

At the current rate of an aging society the Thai SS program is estimated to run out of funds in 25 years. As such the government should be finding means to assure there is more funding for SS rather than accelerating its financial demise.

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The Norwegian Pension Fund has closed the crane completely for the PM.  They borrowed $ 241,180,333 US dollars over the last four years.  We Norwegian pensioners have 0 beliefs in Thailand and Mr PM. ”Immigration”  https://www.nbim.no/no/oljefondet/beholdningene/beholdninger-per-31.12.2018/?fullsize=true.           https://www.nbim.no/en/

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On 11/18/2019 at 7:23 PM, billd766 said:

Robert Maxwell, owner of the Mirror group of newspapers stole £400 million from the Mirror pension funds back in 1991. He went for a cruise on his yacht and "fell overboard" during the night and wasn't missed until the morning. He was in deep doo doo and was facing at least 20 years in jail.

 

The Thai SSF is what it is and it is NOT the PMs piggy bank.

Perhaps the PM should invite representatives of The Mirror Pensions to join his feasibility study

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