Thailand plans new borrowing worth 30.6 billion USD

Patricia Mongkhonvanit, Director-General of the Public Debt Management Office. (Photo: www.bangkokpost.com)

Bangkok (VNA) - Thailand’s Finance Ministry said it will explore domestic and foreign funding options for planned borrowing of 1 trillion baht (30.6 million USD) to finance a major economic stimulus programme.

The debt is a key element of a 1.9-trillion-baht package to help low-income households, farmers and companies reeling from the impact of the COVID-19. According to the Bank of Thailand, Southeast Asia’s second-largest economy may contract 5.3 percent this year.

Patricia Mongkhonvanit, Director-General of the ministry’s Public Debt Management Office, said the country is exploring all possibilities. The sum won’t be borrowed all at once, but proceeded gradually, as the funding need arises, she added.

Patricia said the Finance Ministry is looking at a mix of instruments, including government bonds, treasury bills, promissory notes, term loans and savings bonds. Tapping international organisations like the Asian Development Bank and foreign debt markets are also options, she noted.

The objective is mainly to tap the local market first, she said, adding that there is ample domestic liquidity and demand for Thai products.

A pending executive decree will permit the fund-raising efforts to run through September 2021, a time-frame designed to give Thai officials flexibility since the duration of the outbreak is uncertain./.