Finance Minister Arkhom Termpittayapaisith has given an explanation about the Cabinet decision on the executive decree allowing the Ministry of Finance to secure a loan of 500 billion baht to alleviate social nd economic impacts of the COVID-19 situation.
The executive decree came into effect on 25 May 2021. It authorizes the Ministry of Finance to issue bonds or borrow in baht or foreign currencies up to 500 billion baht. The issuance of the bonds or the borrowing must be made by 30 September 2021.
A plan has been worked out for the spending of the 500-billion-baht loan. Under the plan,
(1)300 billion baht will be used to help, rehabilitate, and compensate affected people of all professional groups
(2) 170 billion baht will be used for economic and social revival
(3) 30 billion baht will be for medical and public health spending to tackle COVID-19 infections.
Mr. Arkhom stressed the need for the Government to urgently seek more funds to ease impacts of the new wave of COVID-19 transmission.
He believed that the executive decree would help stimulate the Thai economy in 2021 and 2022, which is expected to grow by 1.5-2.5 percent.
In 2020, two executive decrees were issued to authorize the Government to secure 1.9 trillion baht in loans, following the COVID-19 outbreak. The first executive decree allowed the Ministry of Finance to secure a loan of one trillion baht. Out of the amount, 600 billion baht was spent on pandemic-related health care and 400 billion baht on economic rehabilitation.
The second executive decree allowed the Bank of Thailand to manage liquidity and direct funds, amounting to 900 billion baht, to the affected target groups.
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