Thailand plans staggered borrowing for $14 bln digital wallet scheme - official

"The timing of the loan depends on suitability and requirement, which corresponds to when the people come and cash in the handout," said Paopoom, adding there would be additional incentives to delay people from cashing out their digital wallets. His comments come after the scheme drew criticism for what opponents called excessive borrowing that would impact the country's fiscal position.

Thailand plans staggered borrowing over two to three years to finance the government's signature $14-billion 'digital wallet' handout scheme, a senior finance ministry official said on Wednesday.

The borrowing will be staggered and based on demand, Paopoom Rojanasakul said, adding the project's overall timeframe is three years and assumes not all vendors will cash out their digital wallets straight away. "The timing of the loan depends on suitability and requirement, which corresponds to when the people come and cash in the handout," said Paopoom, adding there would be additional incentives to delay people from cashing out their digital wallets.

His comments come after the scheme drew criticism for what opponents called excessive borrowing that would impact the country's fiscal position. The populist programme will provide digital payments of 10,000 baht ($279) to about 50 million of Thailand's more than 70 million people to spend in their localities within six months, starting in May 2024.

Another senior government official said the policy was necessary to overcome a "crisis" with growth in Southeast Asia's second-largest economy lagging behind regional peers. ($1 = 35.4600 baht)