Thai cabinet approves massive borrowings to spur growth

Special Report:Global Financial Crisis

BANGKOK, Feb. 3 (Chinese media) -- Thailand's weekly cabinet meeting on Tuesday approved a plan of mas

The domestic borrowing would amount to 200 billion baht (5.9 billion U.S. dollars), which represented a short-term credit facility to ease the liquidity problem among the state enterprises, the website by The Nation newspaper reported Tuesday.

The source of the 200 billion baht fund was to be from domestic

financial institutions, the website by Thai- language newspaper Krungthep Turakij reported Tuesday.

The government would like the state enterprises to play a key role of fresh investments to boost the economy.

For the foreign tranche, it would cover two billion U.S. dollars or almost 70 billion baht in overseas borrowings from the World Bank, Asian Development Bank, or the Japan Bank for International Cooperation.

The overseas borrowings would help finance infrastructure projects that would not only create jobs but would also enhance Thailand's competitiveness in the long term.

The government would need to conduct a public hearing concerning the overseas borrowings and later seek a Parliament approval.

Thai Premier Abhisit Vejjajiva said Tuesday the foreign borrowings had represented a short-term measure to prevent deflation, the website of Thai-language newspaper Matichon reported.

The foreign borrowings would raise the country's public debts to 42 percent, a rise from the 36 percent of the country's gross domestic product in 2009, the Krungthep Turakit's website said.