PM assures MPs that government knows how to handle trillion baht loan

“Don’t worry, we got this…”

Following the Finance Ministry’s securing of a trillion baht loan, PM Prayut Chan-o-cha spoke up to address concerns over how the funds will be administered. Answering questions raised by opposition parties, the PM said the government has clear rules in place on how the funds will be distributed, with the priority being small and medium sized businesses that have been severely impacted by the Covid-19 crisis.

He was speaking as Parliament debated the 3 decrees enacted in the wake of the pandemic, the first of which was to allow for the borrowing of a trillion baht. The PM promises full transparency in how the funds are used, saying the loan has been taken out to prevent small businesses from going bust, which would lead to a further significant rise in unemployment.

A second decree is in place to enable small businesses and start-ups to take advantage of soft loans to survive the huge toll the virus has taken on the economy. Thai PBS World reports the Finance Minister as saying such businesses will receive help with their applications if they are unaccustomed to securing credit from banks.

While the first decree enabled the government to secure a trillion baht loan, the Bank of Thailand says neither the soft loan decree nor an additional bond stabilisation decree will mean more debt for the country. Rather the central bank’s existing funds will be used to help the bond market and to give businesses the lifeline they need in the current exceptional circumstances.

SOURCE: Thai PBS World