Thailand has borrowed 1.5 billion USD from the ADB in efforts to revive its economy (Photo: VNA)Bangkok (NNT/VNA) - Thailand’s FinanceMinister Arkhom Termpittayapaisith has signed an agreement to borrow 1.5billion USD from the Asian Development Bank (ADB) to address economic andsocial issues caused by COVID-19.
Arkhom said after the signing that the borrowing is part of a royal decree toborrow 1 trillion THB to rehabilitate and revive the COVID-19-hit economy. Itwill contribute to national development and help limit the spread of thedisease. The ADB will charge an interest rate of 0.5 percent.
Of the 1 trillion THB, thegovernment has so far borrowed 338 billion THB, or 34 percent of the total. Thegovernment is considering seeking loans from foreign institutions, as many ofthem have offered COVID-19 relief packages.
He said this loan deal will support medical development, help people affectedby the pandemic and revive the Thai economy. The ADB has a policy to grantloans to developing member countries.
The Thai Finance Minister said the loan will be spent in three areas. Theyinclude supporting medical and public health practices, helping those affectedby the pandemic, which is similar to the financial aid of 5,000 THB a month forthree months, and reviving the economic and social sectors.
Funds will be allocated to various projects which receive cabinet approval.Concerning the royal decree to borrow 1 trillion THB, there is still room forborrowing more, but no loan plans are being considered at this time. Theministry is considering loans for infrastructure projects proposed by differentagencies./.
