Display mode (Doesn't show in master page preview)

13 May 2026

Thai Economy

Government borrowing for FY2026 could rise to THB 2.6 trillion following the issuance of the THB 400 billion emergency loan decree (Current Issue No.3642 Full Ed.)

คะแนนเฉลี่ย
  • KResearch assesses that the government’s borrowing under the 400-billion-baht emergency loan decree in fiscal year 2026 will rely on domestic funding sources and multiple borrowing channels, rather than solely on government bond issuance, in order to support economic stimulus measures starting in early June 2026.
  • The government’s overall borrowing for fiscal year 2026 is projected to increase to THB 2.6 trillion, surpassing the level recorded during the COVID-19 period. Borrowing instruments are expected to be diversified to avoid excessive pressure on financial markets. However, borrowings through other instruments will eventually need to be restructured into government bonds, which could lead to increased government bond issuance in subsequent periods.
  • Although the government bond issuance plan is unlikely to change significantly in the short term, the upward trend in public-sector bond issuance is expected to keep Thai bond yields elevated. Thai bond yields are also likely to rise in line with global bond yields amid inflation risks stemming from geopolitical uncertainties.

View full article


Thai Economy