Thailand Says Rise in State Debt Won't Crowd Out Private Sector.

PUBLIC debts; BANK of Thailand; PRIVATE sector; DEBT management; BUDGET; SHORT-term debt; BUDGET deficits

Thailand's finance ministry has stated that the rise in government borrowing to fund the budget deficit and a cash handout will not crowd out the private sector. The ministry is working closely with the Bank of Thailand to manage the state bond supply and ensure that higher borrowing does not affect bond offerings from the private sector. The government's plan to distribute cash to citizens has faced criticism for its potential inflationary and fiscal impact, but the ministry believes it has enough liquidity to handle the increased borrowing. The Cabinet has approved a revision of the public debt management plan to accommodate the financing needs for the cash handout. [Extracted from the article]

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