Thailand approves $6.9 billion borrowing plan for revenue shortfall from COVID-19

[webfact]

Thailand approves $6.9 billion borrowing plan for revenue shortfall from COVID-19

 

FILE PHOTO: Cargo ships are pictured near the port in Bangkok, Thailand, March 25, 2016. REUTERS/Athit Perawongmetha

 

BANGKOK (Reuters) - Thailand's cabinet on Tuesday approved a 214 billion baht ($6.87 billion) borrowing plan for a revenue shortfall in the current fiscal year to September, due to the impacts of the coronavirus pandemic, a government official said.

 

The borrowing is part of an adjusted debt management plan which now sees net new debt of about 1.66 trillion baht, up from about 1.5 trillion baht, plus some debt reductions, deputy government spokeswoman Rachada Dhnadirek told a briefing.

 

The government removed the debt of Thai Airways <THAI.BK> from the public debt plan as the carrier is no longer a state enterprise, she said.

 

With the new plan, the outstanding public debt will be 8.21 trillion baht, or 51.64% of GDP, at the end of the current fiscal year to Sept. 30, Rachada said.

 

Southeast Asia's second-largest economy contracted by 12.2% in the second quarter from a year earlier, the sharpest since 1998, during the Asian financial crisis, as the outbreak hit tourism and domestic activity.

 

The finance ministry earlier said the government's net revenue collection in the first eight months of the fiscal year (October-May) was 1.5 trillion baht, or 11.2% below target, due to the outbreak impact and tax relief measures.

 

The cabinet also approved soft loans worth 114 billion baht to support small-and medium-sized enterprises (SMEs) and individuals, finance ministry official Lavaron Sangsnit said in a statement.

 

"Although the government has introduced relief measures to mitigate the outbreak impact, some SME operators and groups of people still have no access to funding," he said.

 

The government has introduced a 1.9 trillion baht ($61.19 billion) package to mitigate the outbreak impact but the drawdown has been slow.

($1 = 31.13 baht)

 

(Reporting by and Orathai Sriring and Panarat Thepgumpanat; Editing by Martin Petty)

 

-- © Copyright Reuters 2020-08-19

 

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[Chelseafan]

The borrowing is part of an adjusted debt management plan which now sees net new debt of about 1.66 trillion baht, up from about 1.5 trillion baht, plus some debt reductions, deputy government spokeswoman Rachada Dhnadirek told a briefing.

 

NEW debt of $53 billion or 10% of GDP. This cannot be sustainable when around 20% of the countries income is from tourism.

 

 

[RichardColeman]

All very well to borrow NOW to mitigate the problems NOW, but if Thailand does not open up by end of year for high season or chinese new year, this money will be like a sticking plaster on an amputated leg

[sammieuk1]

Sell some watches they are only borrowed empty the swiss vaults flog the London penthouses sell the tanks subs and planes is another plan ????

[heina]

Ah, wait. Bank of Thailand just gave 500 billions free money to banks (0.01% interest).

https://www.bot.or.th/English/PressandSpeeches/Press/2020/Pages/n2063.aspx

And now government need to borrow? Why Bank of Thailand can's be so kind to peoples of Thailand not only fellow friends in banks.

 

PS. Thailand holds 60 billion USD in US treasures. Just sell it. Do not borrow.

[M71]

Wow the Central Banksters / IMF have Thailand by the balls as well as every other country on the planet. In debt up to the taxpayers eye balls.

 

Welcome to the new terrorist on the block - no it ain't Bin Laden, no it ain't the Communists - it's COVID-19 ! - the unseen worldwide terrorist you can't see, can't hear, can't touch and can't confront.

 

Stay scared sheeple - and do whatever your told - or we'll come get ya!

 

 

[dougiemac52]

4 hours ago, RichardColeman said:

All very well to borrow NOW to mitigate the problems NOW, but if Thailand does not open up by end of year for high season or chinese new year, this money will be like a sticking plaster on an amputated leg

And to the abyss Thailand is heading. Not even borrowing from Peter to pay Paul. Cannot just keep borrowing  or don't the thai government realise this. The people who will now suffer will be their own population or tourists and we won't put up with increases in everything 

[5633572526]

8.21 trillion in debt. It appears the foreign currency pot of gold that I have heard touted here previously is either not as big as advertised or has been squandered or pilfered by the current regime. Perhaps they could sell off a couple of those submarines they have on order ????

[miamiman123]

It’s coming and it’s not going to be pretty! 

[heina]

20 minutes ago, 5633572526 said:

8.21 trillion in debt. It appears the foreign currency pot of gold that I have heard touted here previously is either not as big as advertised or has been squandered or pilfered by the current regime. Perhaps they could sell off a couple of those submarines they have on order ????

Head of Bank of Thailand is civilian. Out form Harvard and IMF.

Nothing to do with submarines and uniform.

[Mr Meeseeks]

4 hours ago, RichardColeman said:

All very well to borrow NOW to mitigate the problems NOW, but if Thailand does not open up by end of year for high season or chinese new year, this money will be like a sticking plaster on an amputated leg

Overseas tourism is done for the foreseeable. I think we have to acknowledge and accept that.

[fulhamster]

9 minutes ago, heina said:

Head of Bank of Thailand is civilian. Out form Harvard and IMF.

Nothing to do with submarines and uniform.

He won't last long

[hotchilli]

6 hours ago, webfact said:

Thailand approves $6.9 billion borrowing plan for revenue shortfall from COVID-19

Thailands bubble will burst soon, Thais are up to their necks in debt, no work and little chance of paying it back. The governments revenue is hemorrhaging due to unemployment so they are borrowing up to the hilt.

Maybe a last ditch begging letter to the super rich again before the big bang?

[Bim Smith]

Thai Airways is no longer a state enterprise? Since when? 

[Mr Meeseeks]

5 minutes ago, hotchilli said:

Thailands bubble will burst soon, Thais are up to their necks in debt, no work and little chance of paying it back. The governments revenue is hemorrhaging due to unemployment so they are borrowing up to the hilt.

Maybe a last ditch begging letter to the super rich again before the big bang?

Don't know if there's any more billionaire family criminals on the run that could do with their crimes erased, of course with the exception of a notable wealthy family exiled in Dubai and England.

 

????

[Mr Meeseeks]

1 minute ago, Bim Smith said:

Thai Airways is no longer a state enterprise? Since when? 

Since the Thai Government shareholding went from 80% to 47%

[Bim Smith]

2 hours ago, heina said:

Ah, wait. Bank of Thailand just gave 500 billions free money to banks (0.01% interest).

https://www.bot.or.th/English/PressandSpeeches/Press/2020/Pages/n2063.aspx

And now government need to borrow? Why Bank of Thailand can's be so kind to peoples of Thailand not only fellow friends in banks.

 

PS. Thailand holds 60 billion USD in US treasures. Just sell it. Do not borrow.

They need the 60 billion to prop up the bht

[heina]

10 minutes ago, hotchilli said:

Thailands bubble will burst soon, Thais are up to their necks in debt, no work and little chance of paying it back. The governments revenue is hemorrhaging due to unemployment so they are borrowing up to the hilt.

Maybe a last ditch begging letter to the super rich again before the big bang?

"Western world" Central Banks mint trillions now and give it free to banks and Federal Reserve prime dealers.

So it is a big question where the Big Bang will be bigger.

Someone has to stop them.

 

Billions And Billions And Billions

 

 

[sandyf]

5 hours ago, Chelseafan said:

The borrowing is part of an adjusted debt management plan which now sees net new debt of about 1.66 trillion baht, up from about 1.5 trillion baht, plus some debt reductions, deputy government spokeswoman Rachada Dhnadirek told a briefing.

 

NEW debt of $53 billion or 10% of GDP. This cannot be sustainable when around 20% of the countries income is from tourism.

 

 

Domestic tourism would have to be eradicated for that statement to be valid. Domestic tourism accounts for about 8% of GDP so the borrowing is not far short of the income from international tourism.

Are you trying to say that domestic tourism, or any other form of income, just cannot be increased. 

 

[dallen52]

16 minutes ago, Bim Smith said:

Thai Airways is no longer a state enterprise? Since when? 

Since the government offloaded its majority share.

Down to 48% now.

Just in time for the second stage of the debt rehabilitation plan.

(Can basically wipe its debts and start with a clean sheet, and who knows, maybe the government picks it up for peanuts?)

[grobec]

Well let’s hope the trickle down to the street level economy works as planned. Thailand’s debt level is not really out of line with other countries ( therefore the strong baht) And it is less than 1/2 of the debt to gdp of USA. USA scares me more.

[elgenon]

Did they say who they are borrowing from? Bar girls? Farangs? China?

[heina]

4 minutes ago, elgenon said:

Did they say who they are borrowing from? Bar girls? Farangs? China?

Bank of Thailand gives 500 billion THB to banks free (0.01%). 

Government loans from banks for about 2% or higher.

Easy cash.

 

Bank of Thailand will wipe out future folks income very quick. Slavery.

Edited August 19, 2020 by heina

[johnarth]

I still say the reason the Thai baht is so high because China is pulling strings  for Thai and it is easy to see why, just one is the high speed train to China which Thai is paying China for a win win situation for China

[Isaan sailor]

Let’s hope this cloud has a silver lining.  Perhaps foreign exchange traders will no longer see Thailand as a safe risk on investment—which has brought the Baht to stratospheric levels.

[Bendi]

The only way to fix things is if people start using money. For that to happen is if government loosen up. No loans can save the normal thai family. Only more debts and sinking in to the govermants hands. Get control of the economy and dont just have planes, put the planes in reality. Start using the milions of people that are not in a cooperative or in the govermant planing. Millions of people are waitin to be heard.

[spidermike007]

How about a dramatic cut to the size of the Thai army and navy? That would save hundreds of billions. What useful purpose do they serve, for society? 

 

No grants, no assistance of any kind. Everywhere I go income seems to be down. And yet the ridiculously timid army still refuses to come up with any tourism plan.

 

Any tourist, from any nation, should be allowed in, as long as they are willing to subject themselves to a 14 day jail sentence (quarantine), at their own expense. Anything less is dumb, paranoid, sadistic and cavalier. 

[hobz]

3 hours ago, M71 said:

Wow the Central Banksters / IMF have Thailand by the balls as well as every other country on the planet. In debt up to the taxpayers eye balls.

 

Welcome to the new terrorist on the block - no it ain't Bin Laden, no it ain't the Communists - it's COVID-19 ! - the unseen worldwide terrorist you can't see, can't hear, can't touch and can't confront.

 

Stay scared sheeple - and do whatever your told - or we'll come get ya!

 

 

Yeah, and it's never going away

[Stevemercer]

There is no problem, and all countries are building similar debt. If anything, the package is too small to offset Covid economic impacts much beyond this year.

 

As long as the new debt is in Thai Baht (not American dollars) no worries. The central bank can always print more Baht.

 

If the debt funded big infrastructure projects, creating employment and adding value to agriculture and other primary sectors, it will help. Unfortunately the money is more likely to go to less beneficial projects that benefit fewer people.

[elgenon]

1 hour ago, heina said:

Bank of Thailand gives 500 billion THB to banks free (0.01%). 

Government loans from banks for about 2% or higher.

Easy cash.

 

Bank of Thailand will wipe out future folks income very quick. Slavery.

So they are printing the money?