olarn to push for soft-loan package

The Nation

Deputy Prime Minister Olarn Chaipravat will propose to the Cabinet today to provide a special soft-loan package of at least Bt10 billion to small and medium-sized operators in tourism and related industries, which have been hard hit by the shutdown of Bangkok's airports.

   "We cannot estimate the total loss at the moment. However, the government is preparing to establish this special fund in the same way the central bank provided a soft loan to operators when Tsunami ' target='_blank'> The Tsunami occurred years ago," he said.

   He said the Tourism Ministry had also asked for Bt1.5 billion for compensating and helping stranded tourists here and abroad.

   "The airports need to reopen as soon as possible. If the situation is prolonged, the economic loss will be inestimable. We believe the growth of gross domestic product next year will be flat or negative, while more than 1 million people will be unemployed," he said.

He added that the private sector would like the government to provide the financial budget to be collateral for opening Letters of Credit for operators who could not export their products.

Meanwhile, Tourism Minister Weerasak Kowsurat said the number of stranded tourists had risen to 240,000. Yesterday, he held a press conference with foreign journalists to tell the world that Thailand was doing its best to send stranded travellers home.

He said the soft-loan package is necessary. Even after the protesters end their siege of Suvarnabhumi and Don Mueang, it would require 24 to 48 hours for thorough inspection before airlines could resume operations.

Airports of Thailand acting president Serirat Prasutanond said yesterday that some protesters had left Suvarnabhumi Airport, giving new hope that the airport could be cleared for normal operations soon.

However, even if all the protesters leave, he said the airport would not reopen immediately as it will be subjected to joint inspection by the Department of Civil Aviation and airlines. The airport will reopen only when all parties certify to the safety.

Today, the Joint Public and Private Committee is scheduled to release figures on the damage from the airports shutdown. It is estimated it could run into hundreds of billions of baht. Tourist arrivals target would be cut by half next year from the original figure of 13.5 million, which could put over a million jobs at risk.

At the Public Private Partnership meeting yesterday, more than 200 operators informed ministers of their losses and gave their opinions on how to resolve the situation. Deputy Prime Minister and Foreign Minister Sompong Amornwiwat said their opinions would be presented to the Cabinet today.

"Prime Minister Somchai Wongsawat will decide what to do. However, we have estimated that the impact from the airports' shutdown would ruin the country's economy by more than Bt140 billion in the first quarter," he said.

A source in the private sector said Sompong agreed with an operator in the Association of Domestic Travel, who suggested that businessmen should get together as a group to call on the People's Alliance for Democracy to open the airports.

"Most of the participants did not respond to the suggestion, while some participants said bluntly that the PM should quit or the House should be dissolved in order to ease the political tension," said the source.

Olarn told the press that the government was willing to accept the proposal in order to end the political turmoil.

"The government is thinking of doing something for the sake of the country's benefit if the chaos continues," he said.