Japan hands Thailand $500-million loan for Covid relief

This is allowed under the executive decree for additional loans of up to 500 billion baht, to be spent on measures to address the pandemic’s economic impacts.

Of the approved quota of 500 billion baht, more than 100 billion has remained unused, according to the finance minister.

“This is enough [for Covid relief] and there’s no need to issue another loan decree,” he said.

The Japanese government offered the $500-million loan at low interest, the finance minister said, adding that similar offers also came from the Asian Development Bank and the World Bank to help countries affected by Covid-19 to deal with liquidity issues.

In fact, Thailand has no liquidity problem and the government has borrowed mainly from domestic creditors, Arkhom said.

However, he added, the money from Japan would help maintain Thailand’s liquidity as the private sector needs loans from domestic sources for investment when the economy recovers.

“We have to maintain the balance of domestic liquidity so that the private sector can use the money. When there is surplus liquidity, the government absorbs it,” the finance minister added.