Thailand borrows 13 billion baht from Japan

[buksida]

Thailand will borrow some 13 billion baht from Japan according to a Royal Gazette announcement on Friday.

The announcement said the “emergency support loan” was for the Ministry of Finance to use to mitigate economic and social problems that were caused by the Covid-19 pandemic.

The loan was approved by the Cabinet on April 26.

The 15-year loan contract with an interest rate of 0.01 per cent per year was made with the Japan International Cooperation Agency (JICA). The loan payment, scheduled for May 20 and November 20 of every year, will be exempted for the first four years.

The Front-End-Fee was 0.2 per cent and this payment has to be made within 60 days after the contract is activated.

This loan came on top of the 1.5 trillion baht emergency loans that were made by Prime Minister Prayut Chan-ocha’s administration between 2020 and 2021.

https://www.thaienquirer.com/40800/thai ... -per-cent/

I wonder if Japan knows that Thailand will spend it on old Chinese submarines with no engines.

[Spitfire]

Seems a strange amount to borrow, and in the grand scheme of things, it's nothing really... like just over US $370 million. Also, what about the famously high reserves of FX that Thailand supposedly has?
Though, at that interest rate from the Japanese bank and it being waved for 4 years, you might as well invest your own money somewhere else for 3% and take the loan from the Japanese.
13 billion baht won't last long at the rate they are spending and subsidizing stuff... like maybe fund the diesel price subsidy for couple of months.