Olarn supports new lendings to boost economy
By The Nation
Olarn
Former Deputy Prime Minister Olarn Chaipravat supported the injection of new money into the economic system, believing that such policy, as implemented by the US and China, will quickly address economic problems.
Speaking at a seminar by University of Thai Chamber of Commerce on Monday, Olarn said through the injection of new loans, new money would reach the economic system faster than government spending. His targets are house and vehicle buyers, as both products are of high demand and cover a large number of middle-income earners.
He said that due to the measure, China's economy expanded 6.1 per cent in the first quarter, while the US economy should also see a positive result from the policy.
Olarn said that new loans worth at least Bt300 billion will be sufficient to boost the economy. The loans should be available for purchases of houses, vehicles and consumer products, at the low interest, probably 6 per cent per annum. Still, the government should also come up with a contingency plan to cope with bad debts, in case the borrowers default.