THAI loan 'a temporary fix'

The government should offer a loan to THAI rather than guaranteeing one if it wants to ensure a more sustained rescue of the national carrier, according to a former THAI board member. In a Facebook post to mark the airline's 60th anniversary, Banyong Pongpanich said that while he did not object to the Finance Ministry pledging to guarantee a loan of 50 billion baht for the airline, it could do better by lending to THAI itself and demanding change as one of its creditors. It is not known at this stage whether any entity has offered a loan to rescue the troubled carrier. Banyong said it was "high time THAI undergoes some much-needed major surgery" and this was one way to achieve it. In the end the government will have to pay to bail out the airline anyway, he said, noting the 50b baht would only be enough to extend the airline a lifeline for five months. However, he suggested the government could, as a creditor, accomplish more to straighten out the airline's finances than being a loan guarantor. But before a loan could be extended, the government should make sure the airline goes into a rehabilitation process under the bankruptcy law.<br/>