Businesses Call for Loan Programs to Fight Econ Slowdown Saturday, November 08, 2008 12:00 AM        The chairman of the Thai Analysts Association believes the Thai economy will see a slowdown next year and criticizes the government for being slow in issuing measures to solve the problem, while the private sector is calling for measures to boost domestic consumption and low-interest loans. As the negative effects of the US financial crisis spread across the globe, Thai Analysts Association Chairman Kongkiat Opaswongkarn said the repercussions of the crisis will be felt in Thailand by next year, particularly in the first quarter. Kongkiat criticized the government and the Bank of Thailand for not being alert with measures to fight the global financial crisis. Adding that as the situation is likely to exacerbate, he encourages the private sector to prepare itself in order to survive the crisis. He asked all sides to follow the policies of the new US government closely, as it will most likely center on protecting the American middle class and its domestic industries. He added that Thailand must be careful to maintain its liquidity as the global financial crisis may cause a sharp depletion of liquidity among Thai commercial banks. President of Sahapatanapibul Group Boonyasit Chokwattana commented that if global demand declines as a result of the financial crisis, Thailand must switch to focusing on boosting domestic consumption to maintain the manufacturing sector. At the same time, the Finance Ministry and the central bank must lend help to the business sector through low-interest loans, a weak baht, and a cut in income tax. Federation of Thai Industries President Santi Vilassakdanont pointed out that the report by the central bank stating that 400 billion baht of loans have been approved is a good sign. However, the private sector is worried that commercial banks may tighten their lending criteria because of the global financial crisis so the government should come up with a soft loans project for businesses. He went on to say domestic interest rates should be reduced, as has been the case in other countries, to help boost the economy and restore confidence. The central bank's Monetary Police Committee will meet at the beginning of next month to decide on interest rates. The FTI believes demand in large markets like the United States, Japan, and Europe will fall next year, leading to a decline in Thai exports. Therefore, workers who benefited from overtime pay may have to work less and earn less, resulting in a drop in purchasing power. The issue therefore demands immediate attention. From http://www.thailandoutlook.tv/toc/ViewData.aspx?DataID=1010444 Tuesday, September 07, 2010 4:08 AM http://www.thailandoutlook.tv/