The Ministry of Finance has clarified that the 13 billion baht borrowing plan from Japan will be carried out under the existing loan quota.
Finance Minister Arkhom Termpittayapaisith explained that the quota was implemented under a previous Emergency Decree approved by the government, allowing the ministry to take out loans of no more than half-a-trillion baht. The Ministry of Finance has yet to fulfill that loan quota, which aims to ease the economic slump triggered by the COVID-19 pandemic.
He noted that the low-interest deal with Japan came at an opportune time, as the Kingdom is facing liquidity issues that have affected its borrowing ability.
Prime Minister General Prayut Chan-o-cha stressed that loans under the decree will only be taken out of necessity, with priority given to local lenders. The Japanese loan deal was facilitated under the condition that the fund be used in affairs related to COVID-19, including improving COVID screening procedures along border areas.
He also assured that his administration is doing everything it can to manage Thailand’s financial situation, and that the nation’s fundamentals remain sound. (NNT)