News Forum - Thailand borrows 50 billion yen from Japan to cope with Covid aftermath

[Thaiger]

The Thai government has signed a loan contract to borrow 50 billion yen or about 13 billion baht (US$385 million) from Japan International Cooperation Agency or JICA to cope with costs of handling the Covid pandemic in Thailand. Thai PM and Defence Minister Prayut Chan-o-cha urged Thais not to criticise the government borrowing money again because the amount was included in the existing quota planned with the Japanese government a long time ago. On May 1 to 2, Thai PM Prayut welcomed the Japanese PM Fumio Kishida to discuss cooperation on different topics like infrastructure, investment, startups and SMEs, humanitarian […]

The story Thailand borrows 50 billion yen from Japan to cope with Covid aftermath as seen on Thaiger News.

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[Chatogaster]

 

At first, I thought that this is not great because Thailand will have to use those yen to buy baht (or currencies related to imports). That makes for the worst possible timing since the yen is at a 10-year low. At payback time(s) the yen will probably have recovered (it's hard to imagine how it can get worse), so how can this not be an expensive loan? 

But then I read the official statement that there's nothing to criticize and that everything is fine "because this was planned a long time ago and the interest rate is low". So now I stand corrected and feel on the verge of realizing that I may be feeble-minded.

 

[palooka]

2 minutes ago, Chatogaster said:

 of realizing that I may be feeble-minded.

Only if you believe Pnuts crap.

Mind he probably needs another 100,000 to promote something useless again.

Thais are up to their neck in debt, not just the Govt, the Thai people as a whole if my local area is anything to go by.  I personally could not live with the idea of some of the debt some have gotten  into due to Covid.

Debt is fine, until it blows out from the 10% per month crowd who prey on the poor.

[Poolie]

12 minutes ago, palooka said:

Only if you believe Pnuts crap.

Mind he probably needs another 100,000 to promote something useless again.

Thais are up to their neck in debt, not just the Govt, the Thai people as a whole if my local area is anything to go by.  I personally could not live with the idea of some of the debt some have gotten  into due to Covid.

Debt is fine, until it blows out from the 10% per month crowd who prey on the poor.

That was swift national survey!

[Chatogaster]

20 minutes ago, palooka said:

Only if you believe Pnuts crap.

Mind he probably needs another 100,000 to promote something useless again.

Thais are up to their neck in debt, not just the Govt, the Thai people as a whole if my local area is anything to go by.  I personally could not live with the idea of some of the debt some have gotten  into due to Covid.

Debt is fine, until it blows out from the 10% per month crowd who prey on the poor.

If you think I needed that explanation, a whole lot or irony just went swoosh. If it's to add in details, great & thanks!

Edit: I just saw/realized which part you quoted. So question answered and I'll next click on the thanks icon on your post.

Edited May 5, 2022 by Chatogaster

[Prosaap]

We borrow you pay back and you can not talk about it yes thats sounds ……..

[Pinetree]

Stop taking the usual digs at Thailand. This is literally a tiny drop in the ocean to the borrowing going on in the West, EU, UK, US, Australia, all in hock to China and Japan, who hold most of their ginormous debt.

[palooka]

Expats may get a welcome surprise if the baht decreases because of this loan.

[Guest1]

1 hour ago, palooka said:

Expats may get a welcome surprise if the baht decreases because of this loan.

Because of just 400 Million US$? Come on!

[HolyCowCm]

1 hour ago, Prosaap said:

We borrow you pay back and you can not talk about it yes thats sounds ……..

Correctamundo! 

[alex12345]

 

is it 50 billion or 50 trillion? .. im to lazy to read all this rubbish . someone tell me .. stat ...

seems  like maybe its confused or I am .. forensic accountants from the de@p trial where are you?

Edited May 5, 2022 by alex12345

[HiuMak]

What do you think is the initial reason for this:

https://thethaiger.com/news/national/thailand-and-japan-sign-defence-transfer-pact-to-counter-chinas-growing-influence

[palooka]

14 hours ago, Guest1 said:

Because of just 400 Million US$? Come on!

More the implication to foreign investors and currency traders that all is not as rosey as the Thais make out.  If it is that small an amount, why bother borrowing?

[Guest1]

27 minutes ago, palooka said:

More the implication to foreign investors and currency traders that all is not as rosey as the Thais make out.  If it is that small an amount, why bother borrowing?

They will look at other  numbers, anyway: 

https://www.bangkokpost.com/business/2269795/public-debt-forecast-to-increase-to-62-of-gdp

[palooka]

3 hours ago, Guest1 said:

They will look at other  numbers, anyway: 

https://www.bangkokpost.com/business/2269795/public-debt-forecast-to-increase-to-62-of-gdp

Bank of Thailand governor warns about growing debt levels, calls for sufficiency economic thinking - Thai Examiner

Old news article but the economy has gone backwards since and some of the figures were very bad then.