Thailand was IMF creditor a decade before Prayut

"Thailand is a creditor of the IMF, not a debtor of the IMF as in the past. This is Prayut's government's achievement," reads part of a Thai-language post shared on Facebook on June 8, 2023.

It features a photo of former leader Prayut, who suffered a heavy defeat in May's polls as the upstart progressive Move Forward Party (MFP) rode a wave of youth and urban discontent with nearly a decade of military-backed rule to win the most seats.

But MFP's push to reform royal insult laws and take on powerful vested business interests spooked the kingdom's elite and saw leader Pita Limjaroenrat blocked from becoming prime minister.

This opened the way for election runners-up Pheu Thai to build a coalition that includes Prayut's party.

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Screenshot of the false post, captured on September 14, 2023

Similar false posts saying Thailand became an IMF creditor under Prayut's government have also been shared on Facebook, TikTok and in blogs.

Comments from social media users indicate they believed the claim.

"Uncle Tu not only does not incur debt, but makes us a creditor of the IMF. Uncle Tu has done the best," one said referring to Prayut by his popular nickname.

Many users also said "well done", "good job" and "love uncle Tu".

Creditor before Prayut

But Thailand's IMF creditor status predates Prayut's government -- from 2014 to 2023 -- by more than a decade.

A spokesperson for the IMF said Thailand has been a country member of the Fund's Financial Transaction Plan (FTP) since September 2003 (archived link).

"The quota balances of these FTP members can be used for lending purposes, and this gives rise to what is referred to as a 'creditor' of the Fund," the spokesperson told AFP on September 20.

Thailand was previously a debtor to the Fund when it borrowed around $3.9 billion in 1997 to support the government's economic programme. The debt was fully repaid in 2003 during the government of former leader Thaksin Shinawatra (archived links here and here).

A report from the Bank of Thailand -- the kingdom's central bank -- also shows contributions to the IMF since 2003 (archived link).

A spokesperson for the central bank told AFP on September 18 the bulk of these contributions represents quotas -- the primary source of IMF funding.

They added a portion also goes to borrowing arrangements called NAB which started in 2011 and BBA which was set up two years later (archived links here and here).

"Members' balances drawn under the NAB and BBA are also considered 'creditors'," the IMF spokesperson said.

AFP has previously debunked posts falsely crediting developments in Thailand to Prayut.