The Bank of Thailand says increasing in Kingdom’s national debt ceiling will give flexibility in implementing measures to deal with the coronavirus and support the economy as fiscal measures continue to be required.
The central bank said on Tuesday raising Thailand’s debt ceiling to 70% of (GDP) from 60%, would above all allow the government to raise more funds. Furthermore, it would help a weakened economy while the nation’s tourism sector continues to struggle with no international tourists.
The risk to budget stability is low as the new debt ceiling is not too high and most of the national debt with borrowing costs is domestic, Vice Governor Mathee Supapongse said in a statement.
“Raising the debt ceiling does not mean that the government has to borrow to meet the limit, it means increasing flexibility in implementing the measures,” he said. Furthermore, it would play a key role in helping lower people’s incomes and the rapid recovery of the economy“.
The Thai government’s existing plan is to borrow 500 billion baht to aid the recovery so that GDP indebtedness will be over by next year 60% is expected compared to 55.6% today, he said.
However, there is enough liquidity in the system to support future government bond issuance and the central bank will work closely with the Treasury Department to ensure smooth and efficient fundraising, Mathee said Thailand is forecasting 0.7% economic growth this year after a 6.1% contraction last year.
In other Banking News, JPMorgan-Chase today announced its new digital bank in the UK under the Chase Bank brand. Chase Bank is the largest consumer bank in the United States, providing a wide range of financial services to more than 60 million American households.
New customers can register at chase.co.uk and will then be invited to download the Chase Bank app. Customers can open a checking account in just a few minutes using the simple and intuitive app.
The Bank accounts offer a variety of functions, manage, spend and save money. The UK-led customer service team will be an important part of the Chase Bank experience in the UK. With just a few taps of the finger on the Chase app, customers are connected to a specialist 24 hours a day, 7 days a week.
The Chase Bank checking account starts with a rewards program that offers 1 discount on all eligible debit card spending for 12 months *.
This was developed in accordance with US consumer debit card issuing habits to ensure that all customers can benefit from rewards for many of the things they already buy every day including, but not limited to, food, travel, dining, entertainment, fashion, Household items, electronics as well as flights and vacations.