Thailand

Committee: IMF 1

Loan reform and debt forgiveness

The IMF is an organisation formed by many countries, including Thailand, whose purpose is to

make sure that all of the citizens are satisfied with their environment, looking at the economic

aspects. In addition to this, it profits countries to adjust their balance of payments. Thailand observes,

as a developing country, that expanding the role of loan reform and debt forgiveness is crucial for the

committee to address because it has the power to avoid inequalities and diminish poverty. Debt

forgiveness is also vital, because it gives a chance for developing countries to stabilise their economy

and promote private investment. The only point of this issue is that if these nations are forced to pay

back the borrowed money, this will lead them to having more problems with the financial system.

People in Thailand have not recently suffered from any major crisis; the last time was the 1997

Asian Financial Crisis, also called Tom Yum Goong, in which Thailand was supported by the Fund,

which contributed by lending us $12 billion to overcome this situation. Its purpose was to help

finance the balance of payments and to rebuild the official reserves of the Bank of Thailand. As a

result of this, the delegation of Thailand has not been able to help with the improvement of foreign

countries by providing money. Thailand has been recognised by the IMF for early repayment, which

was two years ahead of schedule. Now, with the loan fully repaid, Thailand has declared to never

again be indebted to the IMF because of the strain put on the country. The strength of Thai votes is

0.60% in the International Monetary Fund organisation, with a total of 15,143 votes.

The IMF seriously took into account this crisis, so at their request; the government had to apply

eleven economic reform laws, although the Parliament is soon expected to amend these regulations.

Thailand also successfully resisted the IMF’s demand for the VAT rate to be increased from 7% to

10%. Thailand and Malaysia have a good relationship because they are nearby countries, not only in
distance, but also in shared history and economic issues. Thailand has made remarkable progress in

social and economic problems in less than a generation. The delegation of Thailand has sustained

strong growth and poverty reduction.

As restoring our nation, Thailand is only focusing on recovering from the bankruptcy that took

place two decades ago. The main reason for the onset of this crisis was the lack of foreign currency

to support its fixed exchange rate.

he delegation of Thailand recommends that the IMF should establish some extreme reformations of

the loans to provide an opportunity to combat inequality in the economic system, which requires a

major effort. Thailand would appreciate to stand up for the loan forgiveness, but meeting some very

strict targets; for example, reforms in economic growth. In conclusion, Thailand emphasizes that

every member country of the IMF should take this matter seriously, so all members that have the

power to establish laws should pass some tourism related reforms, like raising prices, and they

should consume a greater amount of their own products. Thailand believes all countries should be

self-sufficient so none of the nations lose part of their sovereignty as a result of borrowing money,

but too many countries are still suffering from the economic impact of debt.