On March 23, 2021, Thailand’s government approved its latest economic relief package, valued at 350 billion baht (US$11.2 billion), to support businesses in the country.
Some 250 billion baht (US$8 billion) was allocated for soft loans while the remaining 100 billion baht (US$3.2 billion) will go towards an ‘asset warehousing’ program whereby debtors can use their assets as loan collateral but will have the right to redeem their assets under a specific time frame.
- Thailand’s latest relief package aims to improve the liquidity of businesses still impacted by the pandemic through the issuance of soft loans.
- Businesses can also opt for the asset warehousing program, which allows debtors to use their assets as collateral for loans but have the right to buy back their assets once the financial situation of their business improves.
- The asset warehousing scheme will last up to five years.
This latest relief package is an extension of the existing soft loan scheme issued in April 2020; Thailand’s third stimulus package aimed at mitigating the economic impact caused by the pandemic.
The third stimulus package, valued at 1.9 trillion baht (US$58 billion) comprised of 500 billion baht (US$15 billion) worth of soft loans for businesses, 1 trillion baht (US$30 billion) in financial aid to temporary workers, contract workers, and self-employed persons, in addition to local infrastructure development. Furthermore, 400 billion (US$12 billion) was allocated to establish a Corporate Bond Liquidity Stabilization Fund (BSF), a special lending scheme that allows the Bank of Thailand to buy corporate bonds through the BSF to ensure sufficient…
