BANGKOK, May 5 (Xinhua) -- Thai Prime Minister Anutin Charnvirakul said Tuesday that the cabinet has approved a draft emergency decree to borrow up to 400 billion baht (about 12.2 billion U.S. dollars), aimed at cushioning economic impacts from the global energy crisis and accelerating the country's transition toward clean energy.
Speaking at a press conference, Anutin attributed the decision to the ongoing Middle East conflict, which has disrupted global energy prices and economic activities, noting that the crisis has cascaded from energy into food prices, placing immense pressure on the cost of living for citizens nationwide.
Anutin said the government's timely intervention is critical to prevent the Thai economy from sliding into stagflation, which is defined as high inflation combined with a slowing economy.
The draft decree is designed to navigate the Southeast Asian nation through the current crisis and reduce economic vulnerabilities while strictly maintaining fiscal discipline, he added.
According to the Ministry of Finance, the proposed loan will fund two comprehensive initiatives, with the first phase providing immediate financial relief for farmers, small- and medium-sized enterprises, and low- to middle-income citizens to lower living and production costs.
The second phase seeks long-term structural transformation by reducing fossil fuel reliance, promoting renewable energy and electric vehicles, and fostering innovation and workforce skills for the new economy, the ministry said in a statement.
The emergency decree is scheduled to be submitted to the parliament on May 14, and a project monitoring mechanism will be established to track the allocation and implementation of the loan, said Ratchada Thanadirek, a spokesperson of the Thai Prime Minister's Office.
Despite the massive borrowing package, Deputy Prime Minister and Finance Minister Ekniti Nitithanprapas assured the public that the national debt will remain manageable and stay well below the legal ceiling of 70 percent of gross domestic product. ■
