Industry body says Thai government needs to borrow additional 1,000 billion baht

The president of the Federation of Thai Industries calls on the government to borrow an additional 1,000 billion baht to boost the economy in 2022. Supant Mongkolsuthree says more funds are desperately needed to revive an economy devastated by the fallout from the pandemic. According to a report from the Bangkok Post, he says the government’s borrowing of 500 billion baht earlier this year is not enough.

“The trillion baht loan decree is needed to stimulate the economy in 2022. Thailand should follow other countries to borrow more money to effectively restore the economy.”

The call echoes one made by the Bank of Thailand last month, when it said the government would need another trillion baht to restore the decimated economy and improve long-term growth prospects. In 2020, the government used the powers granted by the emergency decree to borrow 1,000 billion baht, which was used for various stimulus measures, followed by another loan of 500 million baht earlier this year.

The Bangkok Post reports that Finance Minister Arkhom Termpittayapaisith insists it is no longer necessary to borrow, but Supant disagrees, saying the money is urgently needed to help small and medium-sized businesses that have suffered greatly from Covid-19 lockdowns.

“SMEs are the backbone of our economy. Most SMEs have been severely affected by the pandemic. They really need the help of the government.

At the same time, the Standing Joint Committee on Commerce, Industry and Banking proposes to increase the guarantees of the subsidized loan scheme for SMEs by a ratio of 40% to 70% of the total line of credit, a proposal supported by Supant, who adds that the ratio should be 100% for companies that have been hit hard by the lockdowns.

THE SOURCE: Bangkok Post

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