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BoT sees mild impact of new COVID-19 wave on the economy

The Bank of Thailand (BoT) does not see the new wave of COVID-19 infections as having as much of an impact on the economy as the first wave, as fewer businesses have had to be suspended.

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BANGKOK (NNT) – Despite a new and wider wave of COVID-19 infections in the country, the Bank of Thailand (BoT) has assessed that the economic impact of the situation will not be as severe as the first wave as the effects of the virus are not as pronounced, and public health preparations, including plans for vaccination, are in place.

Senior Director of Macroeconomics for the BoT Chayawadee Chai-anant explained this week that the central bank does not see the new wave of COVID-19 infections as having as much of an impact on the economy as the first wave, as fewer businesses have had to be suspended and the general public is better prepared.

She added that state measures this time around are also less strict, and should allow the export sector to continue on its growth trajectory. If controls during the first half of the year prove effective, tourism is expected to recover in the latter half.

The BoT foresees however, that recovery will differ depending on the area, as 28 provinces are under strict controls. The 28 being tightly maintained account for half of the nation’s economic activity.

Businesses expected to grow more fragile due to a loss of revenue are those in the service sector as well as the tourism industry, which is already financially weak. An estimated 4.7 million laborers, mostly independents, in red zones are expected to be hard hit by the situation.

The bank believes urgent help is needed for workers and fragile businesses and has been issuing measures alongside the state.

Information and Source
Reporter : Praphorn Praphornkul
Rewriter : Rodney McNeil
National News Bureau & Public Relations : http://thainews.prd.go.th

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Banking

Thailand Raises Public Debt Ceiling from 60% to 70% of GDP

Thailand’s State Monetary and Fiscal Policy Committee has decided to raise the ceiling of the public debt-to-GDP ratio from 60% to 70%

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Thailand’s State Monetary and Fiscal Policy Committee has decided to raise the ceiling of the public debt-to-GDP ratio from 60% to 70%, which will allow further public sector borrowing to rehabilitate the economy battered by COVID-19.

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Banking

Malaysia, Thailand banks to join the ASEAN Banking Integration Framework

Banking institutions from Thailand and Malaysia are invited to join the ASEAN Banking Integration Framework and indicate their interest to become a Qualified ASEAN Bank (QAB) in Malaysia and Thailand.

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Pursuant to the bilateral arrangement under the ASEAN Banking Integration Framework (ABIF) between Bank Negara Malaysia (BNM) and the Bank of Thailand (BOT) which was concluded in April 2019, banking institutions from Thailand and Malaysia are invited to indicate their interest to be a Qualified ASEAN Bank (QAB) in Malaysia and Thailand.

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