Cautious steps towards reviving the economy
After a Cabinet meeting on Tuesday (April 21), Prime Minister Prayut Chan-o-cha said that though there are fewer new Covid-19 infections, the authorities need to be very cautious with the steps they take. He added that he will not be pressured into anything, but will consider every fact thoroughly before making a decision otherwise all the good work done so far will be lost.
As for the lifting of the state of emergency, he said it will be considered next Tuesday and the decision will be based on updates provided by the Public Health Ministry.
Prayut also referred to the three decrees issued to solve the crisis, which allow the Finance Ministry to borrow money to restore the economy, the central bank to work with the ministry to maintain the country’s liquidity by raising Bt400 billion through bonds, and helping small businesses with soft loans under a Bt500-billion fund allocated for the purpose.
Ratchada Thanadirek, deputy government spokesperson, said the Cabinet approved a draft proposed by the Prime Minister’s Office authorising the Finance Ministry to take loans to ease the country’s economic problems.
The draft is divided into six sections, namely:
1. Defining the responsibility of each relevant agency:
a. The Budget Bureau tasked with allocating the loan based on the limit approved by the Cabinet and specifying the relevant rules and practices;
b. The Comptroller General's Department accepting loans on behalf of the Finance Ministry and creating an accounting system, a loan-disbursement system, as well as setting relevant criteria or practices;
c. The Office of Public Debt Management procuring and depositing the loans, establishing a cash-management system and reporting on the loan’s status, including setting criteria or related practices.
2. Consideration and approval based on specifications of the project loans are being sought for:
a. If the project’s objectives are in line with those specified in the decree;
b. If the project is urgent enough and has not been allocated sufficient funds;
c. If the project can be implemented immediately after gaining Cabinet approval;
d. If the project is worthwhile and provides economic or social benefits in line with objectives specified in the decree;
e. Other characteristics as specified by the board
3. How the projects will be implemented, how funds will be allocated, supplies will be disbursed and steps that will be taken if details are transferred or changed, including operation guidelines once the project has been completed.
4. The Public Debt Service Office will deposit the funds borrowed by the ministry in an account called “Loan based on the Emergency Decree to Solve Problems of Covid-19” and specify all disbursements made in line with rules and regulations prescribed by the Finance Ministry.
5. The use of the funds will be monitored and evaluated to see if it is in line with the rules and regulations prescribed by the Finance Ministry.
6. Funds can be reserved for projects awaiting Cabinet approval.