S&P, Fitch Say Thailand Handouts to Boost Economy Risk Ratings Cut

Thailand’s plan to jumpstart its $500 billion economy with a mix of cash handouts and loan moratoriums carries a credit downgrade risk amid a growing reliance on debt and doubts about the nation’s ability to sustain growth, according to ratings companies.

Prime Minister Srettha Thavisin plans to lift government borrowing by about 8% to 2.43 trillion baht ($66 billion) in the fiscal year from Oct. 1 as he boosts spending that includes a signature 560 billion baht cash handout to all adult Thais. He also needs to find revenue for a debt moratorium for farmers and to subsidize electricity and fuel prices.