Thailand announces RM252 bln stimulus package to lessen COVID-19 impact

By Linda Khoo

BANGKOK, April 7 -- Thailand today approved its third stimulus package worth 1.9 trillion baht (RM252 billion) to alleviate the economic impact of the COVID-19 outbreak in the kingdom.

Finance Minister Uttama Savanayana said the package included a law to borrow 1 trillion baht (RM133 billion) through bond issuance and central bank measures of 900 billion baht (RM119 billion) to provide soft loans and corporate bonds.

Of the 1 trillion baht borrowing, he said 600 billion baht (RM80 billion) would be for public health-related measures in combating the COVID-19 pandemic.

“The government is expected to take the loan in early May with a deadline (for completion) in September next year,” he said.

Last month, Thailand introduced two stimulus packages – an injection of 400 billion baht (RM53 billion) into the economy and a 117 billion baht (RM16 billion) package that included 45 billion baht cash handouts for 3 million workers. The cash handout programme has been extended by three months.

Meanwhile, the Bank of Thailand (BoT) announced it would provide soft loans of 500 million baht at a two per cent interest rate to help the small and medium-sized enterprises.

BoT will set up a Corporate Bond Stabilisation Fund to provide bridge financing to high-quality firms with bonds maturing during 2020 to 2021.

Beside that, BoT will halve the rate of contribution from financial institutions to the Financial Institutions Development Fund from 0.46 per cent of deposit base to 0.23 per cent per annum for two years.

BoT governor Veerathai Santiprabhob said central bank would continue to monitor closely the situation and stood ready to take further steps as necessary. 

BoT cut the key policy rate to a record low of 0.75 per cent last month. 

--  BERNAMA