Thailand: Government to borrow to fund cash handouts to farm households

• The Public Debt Management Office (PDMO) is set to borrow another THB50bn under the existing royal decree to fund cash handouts to 10 million farming households, said director-general Patricia Mongkhonvanit.
• It was previously reported that the funds would come from already-planned borrowing of THB1tr.
• The government recently approved a monthly stipend of THB5,000 for three months to 10 million farm households. The office will borrow THB50bn per month in phases.
• Under the royal decree on borrowing, THB550bn has gone towards financial aid for affected informal workers and farmers, THB45bn on healthcare-related expenditure and THB400bn towards economic and social rehabilitation through projects aimed at creating jobs, strengthening communities and building infrastructure.
• Separately, Mrs Patricia said the PDMO has tried to diversify the funding sources and maturities for the THB1tr borrowing plan to match market demand.
• Borrowing from overseas markets must be finalised within the next 1-2 weeks to seek approval from Finance Minister Uttama Savanayana, as credit facilities offered by such sources could be fully reserved. “The overseas market’s borrowing sources offer attractive conditions with low interest rates and long-term repayment periods of 5, 10 and 13 years,” Mrs Patricia said.
• Based on the government’s plan to borrow THB600bn under the THB1tr royal decree on borrowing in FY2020, and the remaining THB400bn in FY2021.

External Link : https://www.bangkokpost.com/business/1912248/pdmo-to-borrow-b50bn-for-farmer-handout

External Link : https://www.thestar.com.my/news/regional/2020/04/28/thailand-to-give-us46bil-cash-handout-to-farming-households