Thai Gov’t borrows 1.5 billion USD from ADB to revive economy
Bangkok (NNT/VNA) - Thailand’s Finance
Minister Arkhom Termpittayapaisith has signed an agreement to borrow 1.5
billion USD from the Asian Development Bank (ADB) to address economic and
social issues caused by COVID-19.
Arkhom said after the signing that the borrowing is part of a royal decree to
borrow 1 trillion THB to rehabilitate and revive the COVID-19-hit economy. It
will contribute to national development and help limit the spread of the
disease. The ADB will charge an interest rate of 0.5 percent.
Of the 1 trillion THB, the
government has so far borrowed 338 billion THB, or 34 percent of the total. The
government is considering seeking loans from foreign institutions, as many of
them have offered COVID-19 relief packages.
He said this loan deal will support medical development, help people affected
by the pandemic and revive the Thai economy. The ADB has a policy to grant
loans to developing member countries.
The Thai Finance Minister said the loan will be spent in three areas. They
include supporting medical and public health practices, helping those affected
by the pandemic, which is similar to the financial aid of 5,000 THB a month for
three months, and reviving the economic and social sectors.
Funds will be allocated to various projects which receive cabinet approval.
Concerning the royal decree to borrow 1 trillion THB, there is still room for
borrowing more, but no loan plans are being considered at this time. The
ministry is considering loans for infrastructure projects proposed by different
agencies./.