Thai PM: gov't mulling foreign loans for economic revival in 3rd quarter

Special Report:Global Financial Crisis

BANGKOK, Feb. 2 (Chinese media) -- Thai Premier Abhisit Vejjajiva said Monday he has asked the Finance Ministry to make a plan of foreign loan borrowing preparing for additional economic stimulus measures possibly in this coming third quarter.

"My working principle is carefulness," the website by Thai-language newspaper Krungthep Turakit quoted Abhisit as saying Monday.

Abhisit said his experience from the Davos' World Economic Forum annual meeting had guided him to understand that the world economic recovery would be a very tough job.

"At that time (the third quarter), if we need to use the money, it will be available for us to use. But, if we find it is not necessary, we do not need to do so," the website quote the premier as saying.

Earlier, The Nation newspaper reported the Finance Ministry would seek an approval from the weekly cabinet meeting Tuesday for a proposal to borrow an initial two billion U.S. dollars or around70 billion baht from international lending agencies.

By the end of January, Thailand's parliament approved an economic stimulus package worth 116.7 billion baht (3.4 billion U.S. dollars), however, many economists have increasingly doubted if it is sufficient.

Also, the weekly cabinet meeting Tuesday will discuss a plan to borrow separately some 200 billion baht (5.9 billion U.S. dollars) to support state enterprises, which are increasingly facing the liquidity crunch's problem.

The plan is being prepared in the wake of the global economic recession, the website by Thai News Agency quoted Finance Minister Korn Chatikavanij as saying Monday.

The source of the 200 billion baht fund was to be from domestic commercial banks, The Nation newspaper said.