Thailand’s finance ministry said the government should have no problem repaying public debt, even if it borrows more in the future.
Finance Minister Arkhom Termpittayapaisith said the decision of the State Monetary and Fiscal Policy Committee to raise the ceiling on the public debt-to-GDP ratio from 60% to 70% will allow more borrowing to rehabilitate an economy affected by the protracted COVID-19 pandemic. .
He said raising the ceiling gives the government more leeway to borrow more than 1,200 billion baht. However, the government will only consider additional borrowing when necessary. This decision does not mean that the government intends to borrow the entire amount.
Mr. Arkhom said the country has a strong debt repayment capacity. The ratio of net public debt to the estimated annual net government revenue is 31.8%, below the ceiling of 35%. In addition, the share of public debt denominated in foreign currencies is only 1.67% against a ceiling of 10%. (NNT)