Bank of Thailand Suggests Additional State Borrowing to Address COVID-19 Economic Impacts

[snoop1130]

 

BANGKOK (NNT) - The Bank of Thailand (BoT) is urging the government to borrow an additional 1 trillion baht to address the severe economic impacts of the COVID-19 pandemic and to boost the country’s long-term growth prospects.

 

BoT Governor Sethaput Suthiwartnarueput said he considers such state borrowing to be reasonable as the economic impacts of the pandemic are expected to be harder and last longer than the BoT’s earlier assessments and fiscal policy should play a key role in ameliorating lockdown pain and supporting the economy.

 

He said the BoT sees it as reasonable to borrow an additional 1 trillion baht, as lower household incomes and higher unemployment, caused by the outbreak, are the areas which need fiscal support. Such a move would increase the country’s public debt ratio to 70% of GDP by 2024.

 

Mr. Sethaput also said the government should use additional borrowing to boost economic multipliers, such as the existing co-payment and loan guarantee schemes and other subsidy measures, to provide relief from the hardships of the pandemic.

 

-- © Copyright NNT 2021-08-17

 

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[ThailandRyan]

Coming soon to a corner near you more handout boxes made by locals instead of government stimulus.  Corruption is to fraught for them to do anything again.

[Scrotobike]

$30 billion - a lot of money - deep troughs

[oznomad]

Go ahead, grab a few trillion.

It will depreciate the THB (good for me).

[Excel]

18 hours ago, Scrotobike said:

$30 billion - a lot of money - deep troughs

What would be the physical weight of $30 billion ? Will it fit into a 747 when people flit this country ?

[Scrotobike]

2 hours ago, Excel said:

What would be the physical weight of $30 billion ? Will it fit into a 747 when people flit this country ?

We can hope but I think they will remain as did the generals of old.....