Finance Ministry launches 100 billion stimulus package to kickstart sagging economy

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The Government is kicking off a new stimulus package valued at 100 billion baht to “stimulate the grassroots economy”.

Prasong Poontaneat, permanent secretary of the Finance Ministry reported that the government is preparing a brand-new stimulus package.

“The Finance Ministry and related agencies will spend more than 100 billion baht on approximately 30 million low-income households nationwide.”

The Nation reports that Prasong said the measures were pioneered by Deputy PM for Economic Affairs Somkid Jatusripitak, who will assign the Finance Ministry and related agencies such as the Bank for Agriculture and Agricultural Cooperatives and Government Saving Bank to implement the new stimulus.

“We also expect to work with Industry and Energy ministries to push the project forward.”

“For instance, we aim to help community-level financial institutions grant special loans at an interest of less than 1.25 per cent per month in order to solve the loan-shark problem.”

“The objective of this measure is to not only boost the gross domestic product, but to also guarantee economic stability at the grassroots level.”

“Currently there are about 7,000 community-level financial institutions, but only 2,000 of them are strong enough to provide adequate financial support to their communities. This is where state-backed banks come in to inject additional funds.”

Separately, Prasong said that the Finance Ministry was confident that the government’s “Eat, Shop, Spend” campaign will attract 10 million participants as targeted.

SOURCE: The Nation