Deputy PM Ekniti Insists Emergency Loan Decree is Necessary to Keep Small Businesses Afloat and Prevent Job Losses

Deputy Prime Minister and Finance Minister Ekniti Nitithanpong has defended the government's decision to proceed with a 400 billion baht emergency loan decree, insisting it is both economically essential and urgently needed. The opposition has challenged the decree at the Constitutional Court, arguing it does not constitute an emergency matter. However, Ekniti maintains that the decree addresses critical economic security concerns, particularly the current cost-of-living crisis affecting citizens' welfare.

Ekniti emphasized that the current crisis differs markedly from the 1997 financial crisis, which was centered on currency devaluation and banking collapse. Today's crisis focuses on living costs, energy prices, and food security—challenges facing many countries worldwide. "The government remains convinced this is urgent and was carefully considered by cabinet," Ekniti stated. "Without immediate action, the crisis will strike in multiple waves."

The deputy PM outlined a cascade of interconnected crises: beginning with the war, followed by energy and oil price spikes, then production cost inflation, and ultimately a cost-of-living crisis. He warned that if living costs continue rising while people's incomes shrink and small businesses cannot sustain themselves, unemployment will inevitably follow, with micro-enterprises suffering first. These constitute economic security issues requiring the government to act through the emergency loan decree.

When asked if the government would proceed without waiting for the Constitutional Court's ruling, Ekniti confirmed that the decree has already been published in the Royal Gazette and became effective one day after publication, so the government will continue implementation.

Regarding suggestions that the second 200 billion baht tranche could be funded through regular budget channels, Ekniti rejected separating the two tranches, as both serve the same 400 billion baht objective. The government aims simultaneously to provide relief and help citizens adapt post-crisis, ensuring people and businesses emerge stronger once the crisis passes—a comprehensive solution addressing multiple problems while reducing impact and building long-term resilience.

Ekniti also noted that many countries view Thailand as facing greater energy crisis risk than most nations due to high energy import dependence. The transition requires reducing impact on citizens; with continued high oil reliance and the global conflict's uncertain duration, Thailand risks repeated energy price shocks, with ordinary citizens ultimately bearing the burden.