Pornprom SatrabhayaThe Oil Fuel Fund has enough credibility for financial institutions to extend it loans to boost liquidity, enabling it to subsidise the domestic oil price, says deputy permanent finance secretary Theeraj Athanavanich. The fund is a key mechanism for stabilising the domestic oil price and would not borrow under normal circumstances, said Mr Theeraj. When considering loans for the fund, financial institutions cannot apply the same criteria as when lending to normal businesses, he said. He said it is possible financial institutions will extend loans to the fund for a term of 3-5 years. Part of the five-baht reduction is earmarked for subsidising the Oil Fuel Fund, with the remainder used to help cap the diesel price, said a ministry source who requested anonymity.

Source: Bangkok Post May 23, 2022 04:29 UTC