Ex-Finance Minister Kittirat to head Bank of Thailand amid backlash

Former Finance Minister Kittirat Na-Ranong has been selected as chairperson of the Bank of Thailand (BOT), sparking fierce debate over his potential influence on the nation’s economic policies.

In a closed-door meeting that lasted five hours yesterday, November 11, the selection committee decided to appoint Kittirat to replace Poramethi Vimolsiri, whose term ended in September. The committee also appointed two new specialist members: Pongpanu Svetarundra, the former permanent secretary of the Tourism and Sports Ministry, and Chunhajit Sangmai, the former deputy permanent secretary of the Finance Ministry.

Sathit Limpongphan, Permanent Secretary of the Finance Ministry and chairperson of the selection panel, confirmed that Kittirat’s appointment still requires Cabinet approval and royal endorsement before it can be official.

Kittirat’s appointment has drawn sharp criticism due to his close ties with the ruling Pheu Thai Party and his advisory role to former Prime Minister Srettha Thavisin. Analysts worry his selection could lead to government interference in the central bank’s operations, threatening its independence.

Some critics fear that the new chairperson might push the central bank’s Monetary Policy Committee to cut interest rates in support of government stimulus programmes, a move that would have far-reaching economic implications.

Additionally, there are concerns that Kittirat may seek to amend laws to transfer debts from the Financial Institutions Development Fund (FIDF) to the BOT, potentially reducing public debt by 5% of GDP and freeing up funds for new government borrowing.

A vocal opposition is forming, with over 50,000 signatures collected from groups like Economists for Society, including four former BOT governors, who argue that Kittirat’s appointment could undermine the BOT’s autonomy and pave the way for politically driven economic decisions, reported The Nation.

ORIGINAL STORY: Bank of Thailand board chair decision delayed amid controversy

The selection process for a new board chairman at the Bank of Thailand (BoT) has been delayed yet again, as the independent committee overseeing the choice opted to postpone its decision for another week. They indicated the necessity of more time to fully consider the information presented.

This marks the second delay in the decision-making process, following an earlier postponement of the meeting initially set for October 8.

Wirekha Santapan, serving as the panel secretary, stated that the committee, led by Sathit Limpongpan, felt it was crucial to meticulously review the details at hand before concluding. Consequently, the decision has been deferred until next week.

The postponement comes amid mounting opposition to one of the candidates, Kittiratt Na-Ranong, whose nomination has sparked controversy. Critics argue that his potential appointment could signify an effort by the Pheu Thai Party to exert influence over the bank’s operations.

A small protest took place outside the bank’s premises, with expectations of a larger turnout in the future.

Former governors of the BoT and several academics have voiced concerns about political figures assuming the role of the central bank’s board chairman.

The Finance Ministry put forward Kittiratt Na-Ranong, known for his connections with the ruling party, as their nominee. In contrast, the central bank has proposed two other candidates: Kulit Sombatsiri, a former permanent secretary of the Energy Ministry, and Surapon Nitikraipot, a law professor and rector at Thammasat University.

The ultimate choice will succeed Poramatee Vimolsiri, whose tenure as the BoT’s board chairman concluded on September 16, reported Bangkok Post.