he cabinet meeting on Tuesday, 26 June 2012 has come to the following decision:
The Cabinet approved a royal decree specifying the amount of deposited funds that will be guaranteed by the government, as recommended by the Finance Ministry. The details are as follows:
First year / 50 million baht / August 11, 2012 — August 10, 2013
Second year / 50 million baht / August 11, 2013 — August 10, 2014
Third year / 50 million baht / August 11, 2014 — August 10, 2015
Fourth year / 25 million baht / August 11, 2015 — August 10, 2016
Fifth year / 1 million baht / August 11, 2016 — August 10, 2017
The royal decree will be implemented into law from August 11, 2012 onwards.
The 2009 royal decree on government guarantee of deposited funds will be canceled.
The government will guarantee a maximum of 50 million baht in deposited funds.
The Cabinet approved the drafting of ministry rules on dealing with securities: one rule concerning an agent in the middle of a securities exchange between parties, and another rule regarding loans for securities businesses. There are a total of three versions, as the Finance Ministry and the Committee on Rules and Regulations recommended.
The Cabinet approved measures through taxes and fees to support debtors who have been affected directly or indirectly through the flood. The Finance Ministry recommended these measures.
Cabinet approved the drafting of a royal decree on revenue from the failed loans (a total of two versions). The Committee on Rules and Regulations will proceed with the decree.
1.Cabinet agreed on an announcement by the Interior Ministry about the rules on lowering the fee for debtors who have been affected by the flood. The Committee on Rules and Regulations will proceed with the announcement.
The Finance Ministry has also informed the Committee on Aid and Reconstruction for Victims of the Flood and the Subcommittee on the Economy, Industry and Social Welfare of these developments.
The Cabinet agreed and approved the following recommendations by the National Police Force:
Approved the drafting of the understanding between the National Police Force and the Interior Ministry of Austria to support tripartite cooperation for internal security (will be signed on July 6-8, 2012)
1.Nominated the Commander of the National Police Force as the signer of the understanding
2.Gave the National Police Force the power to consider small amendments to the understanding without having to consult Cabinet
The Cabinet agreed and approved the recommendations of the Committee for Economy Progress and Society:
1.Approved the drafting of the understanding to improve Thailand’s investment portfolio between the Committee for Economic Progress and Society, the Consortium on Financial System and Poverty of the University of Chicago and the University of the Chamber of Commerce of Thailand
2.Nominated the secretariat to the Committee for Economic Progress and Society, or a representative from the Committee, to sign the understanding
3.Gave the Committee the power to consider small amendments to the understanding without having to consult Cabinet
Important Points
1.The investment fund is one of many national financial accounts. This fund is a tool to see and track investments by various economic agencies; it is also analyzed to see the needs of each agency, and also studied in order to help shape public policy. The Committee has attempted to use the results of the investment fund to help plan policy, but it lacks the expertise to effectively do so. As a result, Committee is enlisting the help of University of Chicago’s Consortium on Financial System and Poverty and the University of the Chamber of Commerce of Thailand. University of Chicago’s Consortium has numerous experts with a wealth of experience in this field, and will be able to help train economic analysts at the Committee.
1.Purpose: to improve the investment fund so that it meets international standards and is able to be used in various capacities; expand the use of this fund
2.Timeframe: Three years, from July 1, 2012 to June 30, 2015
3.The signatories of the understanding are as follows: 1) Secretariat of the Committee for Economic Progress and Society, or a representative; 2) President of the University of the Chamber of Commerce of Thailand, or a representative; 3) President of the Consortium on Financial System and Poverty at the University of Chicago
4.The draft of the understanding will lay out details of the cooperation between the Committee, the University of Chicago and the University of the Chamber of Commerce of Thailand in reforming the investment fund and training members of the Committee to analyze economic data. The understanding is not an agreement that will change national territory of any kind, have any effect on international law or have a significant impact on the economic or social wellbeing of Thailand. As a result, this is not a matter that needs to be submitted for parliamentary approval under Article 190 Section 2 of the Constitution. This matter has been approved by Cabinet, including Deputy Prime Minister Kittiratt Na Ranong and Minister to the PM’s Office Niwatthamrong Boonsripaisal.
--Cabinet Meeting (Yingluck Shinawatra) June 26, 2012--