Thailand plans to sell US$1.3b of govt savings bonds by year-end

THAILAND plans to sell up to 50 billion baht (S$1.9 billion) of government savings bonds by the end of the year to help finance the country’s budget deficit, a finance ministry official said on Wednesday (Oct 12).

The bonds are part of a planned issue of 130 billion of government savings bonds for the current fiscal year starting in October, Patricia Mongkhonvanit, head of the ministry’s public debt management office, told reporters.

There was sufficient liquidity in the Thai market, she said.

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

The central bank’s key interest rate is just 1.00 per cent.

Thailand’s public debt to gross domestic product (GDP) ratio was likely at 60.65 per cent at the end of September, still within the approved limit of 70 per cent, Patricia said. REUTERS