Thailand borrows 50 billion yen from Japan

[reader]

From The 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 assistance to Ukraine and neighbours, and security cooperation against China’s growing influence in the Indo-Pacific region.

Aside from the topics on the table, Thai netizens focused on the new loan amount that the Thai government agreed with Japan. On May 3, the Thai Finance Minister, Akom Termpittayapaisit, explained to Thai media that he signed the agreement on Covid-19 Crisis Response Emergency Support Loan with a representative from JICA Morota Takahiro. The loan amount was 50 trillion yen or about 13 trillion baht. The authority said the loan was offered with low interest at 0.01% and a 4 year grace period.

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Bangkok to impose tobacco tax for the first time

Bangkok is planning to introduce a tobacco tax of up to 10 satang per cigarette, according to the Bangkok Metropolitan Administration (there are 100 satang in a Thai baht). The BMA announced this week that this will be the first time Bangkok will impose a tax on tobacco, which will push the price of cigarettes up by 1.86 baht per pack.

The tax, known as “Tobacco Tax for Local Maintenance” is intended to help limit consumption of tobacco, according to permanent secretary of the BMA Suthathip Son-iam. The tax money will be used “for maintenance of Bangkok city”.

 

[Guest]

Borrowing in a foreign currency is a risky practice.