A whooping 1.9 trillion baht package has been approved by Thailand’s parliament as Southeast Asia’s second-largest economy is likely to contract by 6% to 7% in 2020.
Parliament’s lower house on Sunday voted for the approval of the three main emergency decrees, offering financial support to the businesses.
It is expected that the first decree authorizes the Finance Ministry so as to borrow one trillion baht in order to fund the economic and social rehabilitation to support people who are tremendously affected by coronavirus outbreak.
On the other hand, the 2nd emergency decree has authorized the Bank of Thailand to offer 500 million baht soft loan for the small and medium enterprises hit by the fallout, whereas the 3rd emergency decree will support bond market liquidity with 400 billion Baht through corporate Bond Stabilization Fund (BSF), set-up by the Finance Ministry and the Bank of Thailand.
The virus has taken a huge toll on the economy not only in Thailand but globally. However, this stimulus package is expected to provide some relief to the businesses.
