The House of Representatives has approved an Executive Decree allowing the Ministry of Finance to secure a loan of 500 billion Thai baht. The Decree, aimed at alleviating some of the social and economic impacts of COVID-19, came into effect and was published in the Royal Gazette on 25 May 2021.
The Decree will allow the Ministry of Finance to issue bonds or borrow, whether in Thai baht or foreign currencies, up to THB 500 billion. The issuance of bonds or loan contracts must be made by the Ministry before 30 September 2021.
A plan for the spending of the loan has been set out by the Ministry, with the proposed allocations as follows:
1. 300 billion baht towards rehabilitation and relief schemes to compensate affected sectors and professional groups;
2. 170 billion baht towards economic and social revival projects; and
3. 30 billion baht towards medical and public health in relation to COVID-19.
The Finance Minister, Arkhom Termpittayapaisith has indicated that the passing of the Decree will assist the economy for the remainder of 2021 and into 2022, anticipating a growth of 1.5-2.5 percent.
The Decree follows last year’s one trillion That baht Emergency Loan Decree and is welcome news to businesses who continue to feel the effects of the COVID-19 pandemic.