Thai court clears US$12bil crisis loan in win for Anutin

BANGKOK: Thailand’s Constitutional Court ruled in favor of the government over its US$12 billion emergency borrowing decree, handing prime minister Anutin Charnvirakul a major victory that clears the way for his flagship economic stimulus and energy transition programmes.

The judges ruled Thursday that the emergency loan decree to seek 400 billion baht in spending earlier this year was entirely constitutional, including provisions allowing the government to finance longer-term energy transition initiatives, according to a court statement.

The verdict removes the biggest legal hurdle facing the government’s fiscal agenda, allowing it to press ahead with a 200 billion baht stimulus package designed to support households and revive economic growth, ending months of uncertainty.

The “Thais Help Thais Plus” cash handout programme is the cornerstone of Anutin’s economic agenda, aiming to lift domestic demand as Thailand grapples with sluggish growth, weak consumption and persistently high household debt.

The programme was launched in June, with about 26 million people set to receive 2,000 baht a month for four months to help offset the impact of higher living costs and global energy price shocks linked to the conflict in the Middle East.

The judges voted seven to two that the longer-term energy financing is constitutional, and unanimously voted that the stimulus package is constitutional.

Thursday’s ruling also reinforces how Anutin’s conservative administration, which won February elections, enjoys a high degree of establishment support. His two predecessors as prime minister both fell from power after the Constitutional Court disqualified them.