Japanese borrowing plan to operate within existing quota: Thai finance minister
The Ministry of Finance clarified that Japan’s 13 billion baht borrowing plan will be carried out within the existing lending 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 not exceeding half a trillion baht. The Ministry of Finance has yet to meet this lending quota, which aims to ease the economic crisis triggered by the COVID-19 pandemic.
He noted that the low interest rate deal with Japan came at an opportune time as the Kingdom is facing liquidity issues which have affected its ability to borrow.
Prime Minister General Prayut Chan-o-cha stressed that loans under the decree will be contracted only when needed, with priority given to local lenders. The Japanese loan agreement was facilitated on the condition that the fund be used for COVID-19-related matters, including improving COVID-testing procedures along border areas.
He also assured that his administration was doing everything in its power to manage Thailand’s financial situation and that the country’s fundamentals remained sound. (NNT)