Thailand raises public debt ceiling to fight COVID-19 outbreak

[snoop1130]

FILE PHOTO: A staff member prepares to open a restaurant on the first day of coronavirus restrictions lift on retail and dining in Bangkok and other high-risk areas to revive the economy, as the country battles its worst coronavirus disease (COVID-19) outbreak, in Bangkok, Thailand, September 1, 2021. REUTERS/Chalinee Thirasupa

 

BANGKOK (Reuters) - Thailand has increased the ceiling of its public debt-to-gross domestic product (GDP) ratio to 70% from 60%, the finance minister said on Monday, allowing the government to raise more funds to help a struggling economy.

 

The Southeast Asian country is dealing with its biggest COVID-19 outbreak to date and stricter containment measures have hit economic activity although some have been eased https://www.reuters.com/article/idUSL1N2Q006L from this month.

 

The higher debt ceiling will provide room for the government to borrow more for fiscal policies in the medium term if required, while maintaining good debt servicing ability, Finance minister Arkhom Termpittayapaisith said in a statement.

 

The new debt limit was approved by the fiscal and monetary policy committee, chaired by Prime Minister Prayuth Chan-ocha. It will be reviewed at least every three years.

 

As of July, the debt-to-GDP ratio was at 55.59%.

 

Last month, Arkhom said Thailand's debt-to-GDP ratio was still low compared with other countries despite significant borrowing to finance the outbreak response.

 

The government has introduced a range of stimulus and relief measures since the pandemic with 1.5 trillion baht ($45.86 billion) in borrowing, including a 500 billion baht plan approved this year.

 

Last month, Bank of Thailand Governor Sethaput Suthiwartnarueput said the country would need a further 1 trillion baht in fiscal measures to help cushion losses in jobs and income.

 

The finance ministry has forecast Southeast Asia's second-largest economy will grow 1.3% this year, while the central bank has predicted 0.7% growth.

 

Last year, the economy contracted 6.1%, the deepest fall in more than two decades.

 

-- © Copyright Reuters 2021-09-20

 

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[Rookiescot]

This has got to be a joke.

What happened to the huge financial reserves the central bank holds?

It was supposed to be awash with cash hence the price of the bhat on international markets?

Suddenly its all gone and Thailand needs to borrow cash?

[worgeordie]

So debt in Thailand is going through the roof ????....Government , Public , up to their eyes in it.

but not only Thailand  most of the World has the same problems. I think the very wealthy will

still be OK, 

regards worgeordie

 

 

[Albert Zweistein]

1 hour ago, Rookiescot said:

This has got to be a joke.

What happened to the huge financial reserves the central bank holds?

It was supposed to be awash with cash hence the price of the bhat on international markets?

Suddenly its all gone and Thailand needs to borrow cash?

Pecunia non olet.

[HeijoshinCool]

.

 

And now, for your consideration, allow me to present, Dollars in Seconds:

 

One thousand seconds was 16 minutes ago.

 

One million seconds was 11 days ago.

 

One billion seconds was 31 years ago.

 

One trillion seconds was 31,688 years ago, aka,  29,679 B.C

 

And to think that the US National Debt is a mere 32 trillion. 

 

Hey Thailand, follow the leader.

[Meat Pie 47]

2 hours ago, Rookiescot said:

This has got to be a joke.

What happened to the huge financial reserves the central bank holds?

It was supposed to be awash with cash hence the price of the bhat on international markets?

Suddenly its all gone and Thailand needs to borrow cash?

I guess they can transfer some from Bavaria

[hotchilli]

9 hours ago, Rookiescot said:

This has got to be a joke.

What happened to the huge financial reserves the central bank holds?

It was supposed to be awash with cash hence the price of the bhat on international markets?

Suddenly its all gone and Thailand needs to borrow cash?

Moved off-shore?

[zzaa09]

7 hours ago, Meat Pie 47 said:

I guess they can transfer some from Bavaria

Indeed.

All too many suspicions - 

????