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Thailand plans to sell $3.4 billion in government savings bonds in fiscal 2023

Kitiphong Thaichareon

BANGKOK (Reuters) – Thailand plans to sell 130 one billion baht ($3). In the current fiscal year, which begins in October, $1 billion in government savings bonds will be issued to help cover the country’s budget deficit, a Treasury official said Wednesday.

Some 50 billion baht bonds will be issued later this year, Patricia Mongkhonvanit, head of the ministry’s Public Debt Management Office, told reporters.

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

In the 2023 fiscal year, the government will focus on issuing

of medium-term bonds – years because they are in high demand and yields on long-term debt have risen, she said.

Patricia said the government has no plans to issue dollar bonds unless necessary because they are more expensive than domestic borrowing.

Thailand will only borrow 34 1 billion baht from international lenders such as Asian Development Bank and Japan International Cooperation Agency , she added.

Patricia said the cost of government funding at the end of August was about 2.34%, lower than 3.50% % 2019.

The Bank of Thailand started raising interest rates after raising its key rate in August. For the first time in nearly four years, but currently only 1.00%.

Thailand’s public debt to gross domestic product (GDP) ratio is 60. 65% At the end of September, still within the 70% approval limit, Patricia said.

($1=34.20 Thai Baht)



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