Thailand outlines $3.2 billion stimulus to alleviate coronavirus impact

[snoop1130]

Thailand outlines $3.2 billion stimulus to alleviate coronavirus impact

By Kitiphong Thaichareon

 

 

BANGKOK (Reuters) - Thailand on Friday outlined a stimulus package, estimated to be worth more than $3.2 billion, to mitigate the impact of the coronavirus outbreak on activity in an already-flagging economy.

 

Southeast Asia’s second-largest economy is growing at its weakest pace in years due to soft exports and investment. The epidemic continues to hit tourism, which was a bright spot.

 

The package, approved by the economic cabinet, includes cash handouts, soft loans and other financial assistance, and tax benefits, Finance Minister Uttama Savanayana told reporters after a meeting of economic ministers.

 

“It’s a temporary, broad-based package to help various groups,” he said.

 

The value of the package was not given on Friday, but Uttama earlier said it would be worth more than 100 billion baht ($3.17 billion) and would seek approval from the whole cabinet on March 10.

 

Financial support for businesses includes soft loans at 2% interest rates, debt moratorium and delayed debt repayments, and lower utilities expenses and other costs, Uttama said.

 

The government will give 2,000 baht each to low-income earners, farmers and independent workers, he said.

 

It will offer higher tax benefits on some long-term fund investments to support the stock market .SETI.

 

Measures to help airlines will be considered later, said Kobsak Pootrakool, secretary to the economic cabinet.

 

He said first-quarter economic performance would not be good, with the epidemic currently slashing foreign tourist numbers by about 50%.

 

Thailand’s economy grew 2.4% last year, the weakest in five years. Growth this year is likely to be much lower, with Kasikornbank’s research center predicting it at just 0.5%, the lowest since 2009.

 

-- © Copyright Reuters 2020-03-06

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[xtof2]

20 minutes ago, snoop1130 said:

Thailand outlines $3.2 billion stimulus to alleviate coronavirus impact

So, that's the the monthly wages from the government ?

Edited March 6, 2020 by xtof2

[CeeGee]

Tourist numbers down,exports down,economic growth down,1000s out of work, so where is this money going to come from???(not counting they are committed to paying billions for submarines,hi speed rail etc)

Can anyone give me an intelligent answer?

[Isaan sailor]

12 hours ago, CeeGee said:

Tourist numbers down,exports down,economic growth down,1000s out of work, so where is this money going to come from???(not counting they are committed to paying billions for submarines,hi speed rail etc)

Can anyone give me an intelligent answer?

I’ll hazard a guess...from converting their record setting USD reserves.  And no doubt they grew even more yesterday.  USD nosedived 1% in less than 24 hours...

Edited March 7, 2020 by Isaan sailor

[neeray]

A 100 billion baht stimulus program could seriously affect trough activity in either of two ways. 

A) It could cut into the trough activity and reduce skimming opportunities.

B) It could enhance the trough activity by increasing the "play" money.

[zydeco]

13 hours ago, CeeGee said:

Tourist numbers down,exports down,economic growth down,1000s out of work, so where is this money going to come from???

Each farang on retirement has 800,000 in bank!

[hotchilli]

14 hours ago, xtof2 said:

So, that's the the monthly wages from the government ?

Just Prayut