Thailand on Sunday introduced measures that include a liquidity support fund worth 70 billion to 100 billion baht to reduce risk in the debt market amid the spread of the coronavirus outbreak.
The Thai Bankers' Association, the Government Savings Bank, insurance providers and the Government Pension Fund set up the fund between 70 billion and 100 baht to invest in quality and newly issued corporate bonds that cannot fully roll over maturing corporate bonds, according to a joint statement issued by the Bank of Thailand, Finance Ministry and Securities and Exchange Commission.
"The BoT will continue to provide liquidity to the government bond market through bond purchasing to ensure that the government bond market continues to function normally, it added.
"These measures are expected to provide liquidity and help the normal functioning of the financial market and help build investors’ confidence," it said.
The fresh measures followed the decision of the Monetary Policy Committee to slash its key interest rate by 25 basis points to 0.75% in a special meeting on Friday.
Central bank governor Veerathai Santiprabhob told a new conference on Sunday financial institutions are still strong with high liquidity and authorities will ensure sufficient liquidity and the functioning of the debt market.
The Public Health Ministry on Sunday reported 188 new cases of infections, taking the total to 599.
