Thailand borrows 50 billion yen from Japan to deal with the consequences of Covid
The Thai government has signed a loan agreement to borrow 50 billion yen or about 13 billion baht ($385 million) from the Japan International Cooperation Agency or JICA to meet the costs of handling the Covid pandemic in Thailand. Thai Prime Minister and Defense Minister Prayut Chan-o-cha urged Thais not to criticize the government again for borrowing money because the amount was included in the existing quota planned with the Japanese government there. for a long time.
On May 1-2, Thai Prime Minister Prayut hosted Japanese Prime Minister Fumio Kishida to discuss cooperation on different topics such as infrastructure, investments, startups and SMEs, humanitarian aid to Ukraine and to its neighbours, and security cooperation in the face of China’s growing influence in the Indo-Pacific region.
Besides the topics on the table, Thai netizens focused on the new loan amount that the Thai government has agreed with Japan. On May 3, Thai Finance Minister Akom Termpittayapaisit told Thai media that he had signed the Covid-19 Crisis Response Emergency Support Loan Agreement with a JICA representative. Morota Takahiro. The amount of the loan was 50 trillion yen, or about 13 trillion baht. The authority said the loan was offered with a low interest rate of 0.01% and a grace period of 4 years.
Amarin TV reported that Thailand has a public debt of over 9 trillion baht as of March 2022 updated information. So many Thai netizens complained about the new loans and demanded an explanation from the Prime Minister. .
The prime minister said he was aware the Thais would focus on the loan. He said the amount was included in a long-standing plan to be able to borrow money to address social and economic issues in the wake of the Covid pandemic.
He said the government was “gradually borrowing as needed and focusing on domestic sources of lending”. He wanted Thai people to understand that the money was being spent responsibly.
“Thailand has a solid financial situation. Otherwise, no one would let Thailand borrow money.