23 May 2024

An Executive Decree, which empowers the Thai government to secure loans of up to 1.9 trillion baht to help cushion the impacts of the COVID-19 pandemic on the economy and the people, has come into force following its publication in the Royal Gazette on Sunday.

According to the decree, the cabinet can use up to 600 billion baht of the loans to prevent the spread of the disease and to help farmers and businesses affected by the anti-contagion lockdown measures.

The cabinet can also use up to 400 billion baht from the loans for economic and social rehabilitation and, if necessary, the cabinet can make use of the funds for the purpose of fighting the pandemic.

Also coming into effect are two more executive decrees, one of which is intended to empower the Finance Ministry and the Bank of Thailand to set up a Liquidity Support Fund, to invest in quality and newly-issued corporate bonds, to reduce risk in the debt market. The other decree is to allow the Bank of Thailand to lend up to 500 billion baht to financial institutions, so they are able to extend loans to businesses.