Thai Gov’t borrows 1.5 billion USD from ADB to revive economy hinh anh 1Thailand has borrowed 1.5 billion USD from the ADB in efforts to revive its economy (Photo: VNA)

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./.