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Published: 14:44, October 12, 2022 | Updated: 18:35, October 12, 2022
Thailand plans to sell US$3.4b of govt bonds
By Reuters
Published:14:44, October 12, 2022 Updated:18:35, October 12, 2022 By Reuters

Thailand's central bank logo is seen at the Bank of Thailand in Bangkok, Thailand Apr 26, 2016. (JORGESILVA / REUTERS)

BANGKOK – Thailand plans to sell 130 billion baht (US$3.41 billion) of government savings bonds in the current fiscal year starting in October to help finance the country's budget deficit, a finance ministry official said on Wednesday.

Some 50 billion baht of bonds will be offered later this year, Patricia Mongkhonvanit, head of the ministry's public debt management office, told reporters

Some 50 billion baht of bonds will be offered later this year, Patricia Mongkhonvanit, head of the ministry's public debt management office, told reporters.

There was sufficient liquidity in the Thai market for government bond issuance, she said.

In the 2023 fiscal year, the government will focus on issuing medium-term bonds of 10-20 years because they were in demand and the yield on long-term debt rose, she said.

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The government had no plan to issue dollar bonds, unless necessary, as they were more expensive than domestic borrowing, Patricia said.

Thailand will only borrow about 30 billion baht from international lenders such as the Asian Development Bank and Japan International Cooperation Agency, in the current fiscal year, she added.

Patricia said the government's funding costs were about 2.34 percent at the end of August, down from 3.28 percent at the end of 2019.

Thai interest rates have started to rise after the central bank raised its key interest rate in August for the first time in nearly four years, but the rate is just 1.00 percent currently.

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Thailand's public debt to gross domestic product ratio was seen at 60.65 percent at the end of September, still within the approved limit of 70 percent, Patricia said.

(US$1 = 38.17 baht)


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