BANGKOK: Thailand’s cabinet on Tuesday approved a US$1.5 bil (RM6.33 bil) loan deal from the Asian Development Bank (ADB) to help finance stimulus measures to mitigate the impact of the coronavirus pandemic, a government official said.
The government plans to sign the Covid-19 active responses and expenditure support programme with the ADB later this month, deputy government spokeswoman Rachada Dhnadirek told a briefing.
The loan is part of a plan to borrow 1 trillion baht (RM135.76 bil) for relief measures for Southeast Asia’s second-largest economy which the central bank predicts will contract by a record 8.1% this year.
The finance ministry said the loan would help reduce the impact on domestic liquidity and borrowing costs for both the public and private sectors.
“The government’s external debt remains low and the finance ministry can manage foreign exchange risks”, Rachada said.
The loan will be in two tranches – US$500 mil for 10 years and US$1 bil for five years, she said.
With this borrowing, Thailand’s foreign debt will be 2.46% of the total public debt, below the 10% limit, she added. – Aug 4, 2020, Reuters
