BANGKOK (NNT) – The Thai economy is gradually recovering, with monthly economic indicators, such as the consumer confidence index and domestic spending, showing positive signs.
Purchasing power is mainly driven by the government’s measures to help mitigate the adverse impacts of the COVID-19 pandemic, while loans of 1 trillion baht are being used to fund economic and social rehabilitation.
To deal with a rise in demand for domestic loans from the private sector, the Finance Minister, Arkhom Termpittayapaisith, has directed the Public Debt Management Office (PDMO) to study ways to obtain foreign loans, to help diversify loan sources.
Mr. Arkhom said the cost of borrowing from Thai and foreign institutions is similar. Obtaining foreign loans is another way to diversify loan sources, and it also allows the country to acquire technology for further development. However, the ministry has no plans to obtain foreign loans for fiscal year 2021.
At present, the 1-trillion-baht loan decree consists of a loan of 1.5 billion US dollars, or 48 billion baht, granted by the Asian Development Bank (ADB).
Public debt to GDP stands at 49.34 percent
Currently, the ratio of public debt to gross domestic product (GDP) stands at 49.34 percent, which is below the Fiscal Sustainability Framework set at 60 percent.
With the 1-trillion-baht loan decree and other borrowings combined, the ratio of public debt to GDP will not exceed the 60 percent framework in the next five years, on the assumption that the country’s economy will expand four percent in 2021 and three to five percent over the next five years.
Public Debt Outstanding
|Debt component||Million Baht||Percentage||% per GDP|
|1. Direct Government Debt||5,991,843.55||76.35||37.68|
|2. Government Debt to fiscalise FIDF loss||743,038.21||9.47||4.67|
|3. SOEs Debt||795,980.29||10.14||5.00|
|4. Financial SOEs Debt (Guaranteed)||309,472.36||3.94||1.95|
|5. Other Government Agencies Debt||7,821.47||0.10||0.05|
|6. FIDF Debt||0.00||0.00||0.00|
Information and Source
Reporter : Praphorn Praphornkul
Rewriter : Tarin Angskul
National News Bureau & Public Relations : http://thainews.prd.go.th
12 Things to Know about the ASEAN Catalytic Green Finance Facility (ACGF)
The ACGF is an ASEAN Infrastructure Fund initiative managed by ADB’s Southeast Asia Department Innovation Hub. It helps Southeast Asian governments prepare and finance infrastructure projects promoting environmental sustainability and contributing to climate change goals.
Thai cabinet approves 350 billion baht Aid for COVID-hit Businesses
Thailand unveiled new measures to help small and medium COVID-hit businesses in the tourism industry hit by a liquidity crunch.
APAC Banks to Face Portfolio Valuation Losses As Yields Rise
The latest data suggest that Fitch-rated banks in Hong Kong, India, Indonesia, Malaysia and Taiwan have the largest AFS securities portfolios, and display particular sensitivity to changes in yields.
Fitch Ratings-Hong Kong/Singapore-21 March 2021: A rise in yields for long-dated sovereign bonds will result in near-term losses for Asia-Pacific (APAC) banks as they recognise valuation changes on their available-for-sale (AFS) bond portfolios, but the capital impact should be manageable for most rated banks, says Fitch Ratings.
Subscribe via Email
Thai fruit exports to FTA markets up 107 percent
China, Malaysia, Singapore, Indonesia, the Philippines, Hong Kong, Australia and Chile are top importers of Thai fruits, especially fresh durian,...
Digital Revolution and Repression in Myanmar and Thailand
Activists have also proactively published social media content in multiple languages using the hashtags #WhatsHappeningInMyanmar and #WhatsHappeningInThailand to boost coverage...
3 Reasons to Be Optimistic About the Baht Right Now
Probably one of the most important factors for the rise of the Baht is the continued weakness of the US...
Will Thailand’s plan for quarantine-free tourism set a global trend?
According to the Tourism Authority of Thailand, the quarantine-exemption measures implemented in Phuket will be extended to five other key...
Thailand Approves Latest Economic Relief Package for Businesses
Some 250 billion baht (US$8 billion) was allocated for soft loans while the remaining 100 billion baht (US$3.2 billion) will...
Southeast Asia remains a hot spot for plastic pollution
The use of plastics is deeply embedded in our daily lives, in everything from grocery bags and cutlery to water...