Proposal to Liberalize the FBA

The Ministry of Commerce takes the position that the granting of a loan is considered a restricted activity under Thailand's Foreign Business Act (FBA).  However, on 1 December 2011 by the Deputy Minister of Commerce (Mr. Siriwat Kachornprasart) proposed that this restriction be lifted for loans between affiliated businesses which have been affected by the floods so companies would not need to seek approval on a case-by-case basis.  It is not known if this proposal to "liberalize" the FBA has been submitted to the Cabinet, but Mr. Siriwat is discussing it further with the Federation of Thai Industries.  We will provide more information when it becomes available.