Thailand to borrow $12.2B as Mideast crisis bites
Bangkok—Thailand approved a $12.2 billion emergency borrowing package on Tuesday to cushion the economic impacts of the Middle East war, marking one of the country’s largest borrowing plans in decades.
The Cabinet said the funding would be used to boost domestic spending and ease economic hardships as inflation rises and growth slows, with the finance ministry last week cutting its GDP growth forecast to 1.6 percent, from 2.4 percent last year.
The loan of about 400 billion baht will be deployed from June to September, and include aid for more than 20 million low-income people under the government’s “Thais Helps Thais” scheme to ease living costs.
It will also be used to support alternative energy, Finance Minister Ekniti Nitithanprapas said.
The US-Israel war against Iran that began in late February has roiled global energy prices, resulting in rising prices for oil and gas, shipping and consumer goods.
Prime Minister Anutin Charnvirakul called the loan “a tool to move the country forward and prevent economic weakening.”
