BANGKOK: Thailand today approved its third stimulus package worth 1.9 tril baht (RM252 bil) 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 tril baht through bond issuance and central bank measures of 900 bil baht to provide soft loans and corporate bonds.
Of the 1 tril baht borrowing, he said 600 bil baht 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 added.
Last month, Thailand introduced two stimulus packages – an injection of 400 bil baht into the economy and a 117 bil baht package that included 45 bil baht cash handouts for three 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 mil baht at 2% 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.
It will also halve the rate of contribution from financial institutions to the Financial Institutions Development Fund from 0.46% of deposit base to 0.23% a year for two years.
BoT governor Veerathai Santiprabhob said the 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% last month. – April 7, 2020, Bernama
