Japanese Borrowing Plan to Operate Under Existing Quota

[snoop1130]

 

BANGKOK (NNT) - The Ministry of Finance has clarified that the 13 billion baht borrowing plan from Japan will be carried out under the existing loan 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 of no more than half-a-trillion baht. The Ministry of Finance has yet to fulfill that loan quota, which aims to ease the economic slump triggered by the COVID-19 pandemic.

 

He noted that the low-interest deal with Japan came at an opportune time, as the Kingdom is facing liquidity issues that have affected its borrowing ability.

 

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Prime Minister General Prayut Chan-o-cha stressed that loans under the decree will only be taken out of necessity, with priority given to local lenders. The Japanese loan deal was facilitated under the condition that the fund be used in affairs related to COVID-19, including improving COVID screening procedures along border areas.

 

He also assured that his administration is doing everything it can to manage Thailand’s financial situation, and that the nation’s fundamentals remain sound.

 

-- © Copyright NNT 2022-05-04

 

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[tomster]

Something weird here. 

 

Covid is over, why is the government borrowing from abroad now to cover any costs associated with it? 

 

And Japan is triilions in debt - how is it able to loan money? 

[RichardColeman]

I guess it'd be a shame to sell some of that stockpiled gold and cash in the foreign assets rather than borrow more money.

[zzaa09]

1 hour ago, tomster said:

Something weird here. 

 

Covid is over, why is the government borrowing from abroad now to cover any costs associated with it? 

 

And Japan is triilions in debt - how is it able to loan money? 

Because there isn't any true wealth anywhere and most make up things outta thin air?

The universal economic practice.

[hotchilli]

13 hours ago, snoop1130 said:

He noted that the low-interest deal with Japan came at an opportune time, as the Kingdom is facing liquidity issues that have affected its borrowing ability.

The pots empty?

Gold reserves gone?

[hotchilli]

12 minutes ago, RichardColeman said:

I guess it'd be a shame to sell some of that stockpiled gold and cash in the foreign assets rather than borrow more money.

Gold what gold... ????

[itsari]

1 hour ago, tomster said:

Something weird here. 

 

Covid is over, why is the government borrowing from abroad now to cover any costs associated with it? 

 

And Japan is triilions in debt - how is it able to loan money? 

Covid is not over and Japan are a rich nation well able to loan out money I am quite sure of that .

[vandeventer]

1 hour ago, RichardColeman said:

I guess it'd be a shame to sell some of that stockpiled gold and cash in the foreign assets rather than borrow more money.

But governments do this all the time they spend or loan money they don't have. Going back a super long time ago we use to trade in sea shells maybe it's time to go back to that time as the paper money is so corrupt.

[StayinThailand2much]

7 hours ago, vandeventer said:

9 hours ago, RichardColeman said:

I guess it'd be a shame to sell some of that stockpiled gold and cash in the foreign assets rather than borrow more money.

Expand  

But governments do this all the time they spend or loan money they don't have.

Only this time they borrow the money they already have (in foreign currency reserves)... A bit like Bill Gates going to the bank and asking for a 10,000-dollar loan. 

Edited May 5, 2022 by StayinThailand2much