Bangkok: “Thirachai” criticizes “Thaksin’s” idea of buying back the people’s debts nationwide. We have to see through it. Is it really possible or is it just election campaign rhetoric? He urges the “Bank of Thailand – Credit Bureau” to clearly explain to society whether the country’s finances can accept it or not.
According to Thai News Agency, Mr. Thirachai Phuvanatnaranubala, former Minister of Finance and Co-Chairman of the Policy and Academic Center of the Palang Pracharath Party (PPRP), held a press conference regarding Mr. Thaksin Shinawatra’s proposal. Thaksin, the former Prime Minister, suggested during his campaign speech for the mayoral race in Phitsanulok Municipality that the Thai government could solve the national debt issue by purchasing citizens’ debt and erasing their credit bureau records to provide them a fresh start. Thirachai noted that while the idea aims to address the challenges of debt repayment and informal loans, it remains to be seen whether this is a practical solution or merely campaign rhetoric. The Palang Pracharath Party has already suggested alternatives to the government, such as reducing the principal of loans, but progress has been slow.
Mr. Thirachai emphasized that this concept of a national debt buyback is unprecedented and urged the public to remain skeptical about its feasibility. He stressed the importance of distinguishing between mere election promises and actionable policies, especially as this topic is likely to surface during the upcoming no-confidence debate, prompting questions directed at the Prime Minister.
He called on key financial institutions, including the Bank of Thailand and the Credit Bureau, to clarify whether Thaksin’s proposal is realistic or a mere fantasy. Thirachai questioned whether any country has successfully implemented such a policy and raised concerns about potential government backing. He highlighted the significant debt burden that could arise if the government were involved, questioning whether the national finances could sustain a debt load potentially reaching 20 trillion baht.
Furthermore, Thirachai urged the Bank of Thailand to assess the potential impact of such an action on the financial and banking systems’ stability and international credibility. He speculated that Thaksin might propose using private companies to issue digital currency as part of the debt buyback scheme, questioning the credibility of such currency without substantial backing. Thirachai also raised concerns about the implications for public debt and potential violations of the Fiscal Discipline Act, should the digital currency be considered public debt upon issuance.
