Thai cabinet to consider 3.3 bln-dollars loan for flood rehabilitation

Commerce Minister Kittirat na Ranong Tuesday siad that his ministry will propose the cabinet consider approval of a loan of 100 billion-baht (3.3 billion U.S. dollars) for post-flood reconstruction. If approved, the country will be set to run a budget deficit of 500 billion baht (16.3 billion dollars) for its 2012 budget. Earlier, the government has expected overall revenue for the fiscal year 2012 at about 1.98 trillion baht (64.2 billion dollars) while spending at around 2.33 trillion baht; however, the government needs to spend more to revive the economy after the nation suffered the most severe floods in more than 50 years. The commerce minister said if the Tuesday's cabinet meeting approves the proposal, the government will not have to review its policies or reduce budget of each ministry by 10 percent as suggested before. Thailand along with other countries in Southeast Asia -- Cambodia, the Philippines and Vietnam -- has been battered by heavy monsoon floods, causing severe economic damage. In Thailand, until now five industrial estates have been inundated with about half a million of employees at risk of losing their jobs. The central estimated on Monday that the ravaging floods may cost the country's economy at least 100 billion baht (3.3 billion dollars).