Thailand to raise debt ceiling amid pandemic

Thailand has decided to raise its debt ceiling as public spending continues to grow to support the economy that has been battered by the coronavirus pandemic.

The Thai government announced on Tuesday that it will increase the cap on its debt-to-GDP ratio from 60 percent to 70 percent.

The move comes as the country's debt balance is nearing the limit.

A higher borrowing ceiling will enable officials to take additional economic measures. However, the Thai baht could lose some of its value, if markets see the move as a loosening of fiscal discipline.

Thailand's neighbor Malaysia lifted its borrowing limit last year, and is considering doing so again.
Many countries face the challenge of balancing stimulus spending and fiscal stability, as the pandemic drags on.