Southeast Asia

Sum of Measures 1—5 (Total Package)

Total Package in USD Million: 84,092
% of GDP (2019): 15.96%
% of Regional Total Package: 24.28%
Package Per Capita in USD: 1,211.20
Note: Measures 9 and 10 are added to the sum of Measures 1-5.
Measure Amount (Local) Amount (USD) Details Update Source
01 - Liquidity Support info_outline
01A - Short-term lending info_outline

No amount/estimate: A special facility was set up to provide liquidity for mutual funds through banks.

01B - Support policies for short-term lending info_outline

No amount/estimate: The Bank of Thailand (BOT) has provided temporary relaxation of repayment conditions for businesses.

01C - Forex operations info_outline

No amount/estimate: The BOT has provided some liquidity in the foreign exchange market thereby avoiding disorderly market conditions while also allowing the exchange rate to adjust as a shock absorber.

02 - Credit creation info_outline THB850,000,000,000 USD26,473,340,497
02A - Financial sector lending/funding info_outline THB500,000,000,000 USD15,572,553,233

Soft loans by the BOT to financial institutions amounting to THB500 billion to be on-lent at 2% interest to small and medium-sized enterprises (SMEs) with outstanding (non-nonperforming) loans.

02B - Support policies for long-term lending info_outline

No amount/estimate: (i) The policy rate was reduced by 50 basis points (bps) from 1.25% to 0.75% during the first quarter of 2020 and by another 25 bps on May 20 to a record low 0.5%; (ii) the contribution from financial institutions to the Financial Institutions Development Fund (FIDF) was reduced from 0.46% to 0.23% of the deposit base to provide space for a decrease in lending rates; and (iii) Financial sector liquidity-related regulations were temporarily relaxed in order to support Measure 1B. (iv) June 19, BOT introduced additional debt relief measures including 2-4 pps interest rate cuts for credit cards (from 18% to 16%) and personal loans (from 28% to 24-25%) effective August 1; lenders must urgently help borrowers with debt restructuring such as extending payment periods and reducing interest rates. BOT will raise credit lines for credit cards and personal loans for good debtors from August to December. [update] (v) June 19, BOT asked commercial banks to prepare capital management plans for the next 1-3 years and to not pay interim dividends in 2020 or buy back shares to preserve capital. [update]

02C - Loan guarantees THB350,000,000,000 USD10,900,787,263

The government covers the first 6 months of interest and guarantees up to 60%–70% of the THB500 billion loan (see Measure 2A).

03 - Direct long-term lending info_outline THB450,000,000,000 USD14,015,297,910
03A - Long-term lending info_outline THB450,000,000,000 USD14,015,297,910

(i) The Corporate Bond Stabilization Fund (BSF) was established to provide bridge financing of up to THB400 billion to high-quality firms with bonds maturing during 2020–2021, at higher-than-market ‘penalty’ rates (includes both public and private participants). (ii) April 30, The State Enterprise Policy Committee meeting approved in principle the proposal to rehabilitate Thai airways international, the national carrier, with a loan worth THB50 billion.

03B - Forbearance

No amount/estimate: Loan payment holiday of 6 months for SMEs and suspension of principal.

04 - Equity support info_outline
05 - Government support to income/revenue THB1,400,000,000,000 USD43,603,149,053

In response to COVID-19, the Cabinet has approved a fiscal package with phases I, II, and III amounting to at least 10% of GDP or THB1.9 trillion including (i) health-related spending; (ii) assistance for workers (includes 3 million workers outside the social security system), farmers, and entrepreneurs affected by COVID-19; (iii) support for individuals and businesses through soft loans from Specialized Financial Institution (SFI) and Social Security Office (See THB500 billion in Measure 2A), and tax relief; and (iv) lower water and electricity bills, and lower employees’ and employers’ social security contribution.

05A - Health

See Measure 5

05B - Non-health

See Measure 5: (i) The government covers the first 6 months of interest and guarantees up to 60%–70% of the THB500 billion loan as part of the THB350 billion that the government will cover (See Measure 2: Loan guarantees); (ii) Reduction of interest on the debts to SFIs; (iii) May 5, The government approved a 20% discount on water bills to private consumers until the end of June. (iv) No amount/estimate: June 2, The Cabinet approved a 90% reduction in land and building taxes for the year and a 2-month postponement in the deadline for filing personal income tax returns. (v) June 16, THB22.4 billion domestic tourism package approved by the Cabinet including subsidies for tourism service providers, domestic tourists and health officials July to October. [update]

06 - Budget reallocation info_outline
07 - Central bank financing government THB100,000,000,000 USD3,114,510,647
07A - Direct lending & reserve drawdown
07B - Secondary purchase: government securities THB100,000,000,000 USD3,114,510,647

The BOT purchased government bonds in excess of THB100 billion in March to ensure the normal functioning of the government bond market.

08 - International Assistance Received THB263,283,736 USD8,200,000
08A - Swaps info_outline

No amount/estimate: March 31, An additional currency swap (THB–JPY) between the BOT and Bank of Japan was signed.

08B - International loans/grants THB263,283,736 USD8,200,000
08B1 - Asian Development Bank THB54,583,214 USD1,700,000

(i) April 8, USD950,000 grant under TA: Regional Support to Address the Outbreak of COVID-19; (ii) April 24, USD750,000 grant under TA: Policy Advice for COVID-19 Economic Recovery in Southeast Asia.

08B2 - Other THB208,700,523 USD6,500,000

USD6.5 million in grants for health and humanitarian assistance from the United States Agency for International Development (USAID) for health and humanitarian assistance.

09 - International Assistance Provided
09A - Swaps info_outline
09B - International loans/grants
10 - No breakdown
11 - Other Economic Measures
12 - Non-Economic Measures

(i) 23 March, Countries considered as risk zones and travellers from those countries need to undertake quarantine for 14 days. Travellers from these countries must submit health certificates that show no COVID-19 infection in advance of their trips. Thailand also halted issuance of visa on arrival for some other countries. (ii) All schools have been closed since 18 March until further notice. (iii) In Bangkok and its vicinity, leisure and sport facilities, such as boxing arenas, pubs, among others, have suspend their businesses for 14 days until the end of March. In addition, the Bangkok Metropolitan Government announced on 21 March that most of nonessential commercial services, including shopping malls, restaurants and sport facilities, among others, would be closed from 22 March to 12 April. (iv) 28 April 2020, The government extended the period of the state of emergency including the night curfew between 22:00 to 4:00hr,as well as the temporary ban on all international flights to Thailand, until 31 May 2020. (v) May 1, several airlines resumed domestic operations in major airports, except Phuket International airport (where the closure has been extended until May 15,) conditional on strict hygiene and preventive guidelines. (vi) The first out of four stages for relaxation of Covid-19 containment measures started on May 3, by opening low-risk businesses including markets, small eateries, small retail outlets, exercise facilities, and hairdressers;mplementation of subsequent stages will depend on the evolution of Covid-19 infection. (vii) May 11, The BOT revised its bond issuance program for 2020: (a) Expanded ranges of maximum and minimum issue size per auction to 10,000 – 60,000 million baht for all maturities of BOT bills; and (b) may consider adjusting the auction frequency of the 3- and 6-month BOT bills, and the fixed-coupon bonds, to accommodate the issuance schedule of Treasury Bills and government bonds of comparable maturities. (viii) May 16, the Civil Aviation Authority of Thailand extended the temporary ban on international passenger flights until June 30 with limited exceptions. (ix) May 17, the second phase of lockdown relaxation took effect with more businesses allowed to resume activities. (x) June 12, Authorities announced the lifting of the nationwide curfew on June 15 as part of its phase four easing of lockdown measures.