Govt issues four controversial decrees
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The government issued four emergency decrees to set in motion flood-relief efforts after they were published in the Royal Gazette yesterday.
The most controversial decree requires the Bank of Thailand to service Bt1.14 trillion in public debt incurred by the Financial Institutions Development Fund (FIDF). The decree demands the central bank contribute at least 90 per cent of its total net profit to pay off the debt.
The central bank will also have to transfer the remaining assets in its annual yield account to pay the debt by not transferring them to the special reserve account. The central bank has to make use of the FIDF’s money or assets for debt repayment according to the Cabinet’s order.
Two decrees authorise the central bank to provide Bt300 billion in soft loans and the Finance Ministry to borrow Bt350 billion to finance post-flood reconstruction projects.
The other decree creates a Bt50-billion insurance pool for flood-damaged companies.
