Thailand’s PM Anutin Urges Banks to Inject Liquidity as Economy and Strong Baht Raise Alarm
New government presses financial sector to ease credit pressure on SMEs and households and forms task force to address currency surge
Thailand’s Prime Minister Anutin Charnvirakul has called upon banks to significantly increase liquidity to support small and medium enterprises and households, as part of a broader push to revive the economy under his new administration.
The request followed a meeting with the Thai Bankers’ Association, during which Deputy Prime Minister and Finance Minister Ekniti Nitithanprapas announced a working group to address the baht’s recent rapid appreciation, which threatens exporters and the tourism sector.
Anutin emphasised the urgency of “quick big win” measures designed to deliver short-term recovery while setting foundations for long-term structural reforms.
Household debt, restricted credit access, and SME liquidity emerged as key challenges the government intends to confront.
State support is being mobilised: the Thai Credit Guarantee Corporation has been given 50 billion baht to back SME lending under the Portfolio Guarantee Scheme, and a 5-billion-baht loan scheme named “Ignite Thailand” will be distributed by the Government Savings Bank to bolster liquidity for SMEs.
Commercial banks are also being encouraged to review their lending criteria to ease access for creditworthy borrowers.
Officials have expressed concern that the strong baht, having hit a four-year high, is undermining Thailand’s export competitiveness and contributing to imbalances in the economy.
The newly formed team led by Finance Minister Ekniti will monitor currency inflows and outflows and propose mechanisms to manage the baht’s trajectory without disrupting financial stability.
This plan represents one of the first major economic interventions under Anutin’s premiership, signalling a more interventionist approach to managing macroeconomic risk, credit constraints, and sectoral vulnerabilities that have worsened since mid-2025.
The request followed a meeting with the Thai Bankers’ Association, during which Deputy Prime Minister and Finance Minister Ekniti Nitithanprapas announced a working group to address the baht’s recent rapid appreciation, which threatens exporters and the tourism sector.
Anutin emphasised the urgency of “quick big win” measures designed to deliver short-term recovery while setting foundations for long-term structural reforms.
Household debt, restricted credit access, and SME liquidity emerged as key challenges the government intends to confront.
State support is being mobilised: the Thai Credit Guarantee Corporation has been given 50 billion baht to back SME lending under the Portfolio Guarantee Scheme, and a 5-billion-baht loan scheme named “Ignite Thailand” will be distributed by the Government Savings Bank to bolster liquidity for SMEs.
Commercial banks are also being encouraged to review their lending criteria to ease access for creditworthy borrowers.
Officials have expressed concern that the strong baht, having hit a four-year high, is undermining Thailand’s export competitiveness and contributing to imbalances in the economy.
The newly formed team led by Finance Minister Ekniti will monitor currency inflows and outflows and propose mechanisms to manage the baht’s trajectory without disrupting financial stability.
This plan represents one of the first major economic interventions under Anutin’s premiership, signalling a more interventionist approach to managing macroeconomic risk, credit constraints, and sectoral vulnerabilities that have worsened since mid-2025.
