Thailand’s Finance Ministry says that the government should not have a problem repaying public debt, even if it borrows more in the future.
Finance Minister Arkhom Termpittayapaisith said the State Monetary and Fiscal Policy Committee’s decision to raise the ceiling of the public debt-to-GDP ratio, from 60% to 70%, will allow further borrowing to rehabilitate an economy battered by the prolonged COVID-19 pandemic.
He said raising the ceiling gives the government more room to borrow more than 1.2 trillion baht. However, the government will only consider additional borrowing when necessary. The move does not mean the government intends to borrow the full amount.
Mr. Arkhom said the country has strong debt repayment capability. The ratio of net public debt to the government’s estimated net annual revenue is 31.8%, lower than the ceiling of 35%. Moreover, the proportion of foreign currency-denominated public debt is as low as 1.67%, compared with the ceiling of 10%. (NNT)