PDMO: Cabinet-endorsed credit line for potential public debtThe cabinet's recent endorsement to approve an additional loan of 214 billion baht to compensate for the budget deficit is intended as a credit line in case public expenses exceed revenue, says the Public Debt Management Office (PDMO). For fiscal 2021, the ratio of public debt to GDP is expected to rise to 57.8%, depending on Thailand's GDP growth. The PDMO has taken out a sum of 338 billion baht under the 1-trillion-baht emergency loan decree. The bonds will be offered in two tranches: 5 billion baht in four-year bonds with a coupon of 1.7% and 45 billion of seven-year bonds with a 2.22% coupon. The offering follows the sale of 50 billion baht in government savings bonds in May to help mitigate fallout from the coronavirus outbreak under a 1-trillion-baht borrowing plan.

Source: Bangkok Post August 21, 2020 00:00 UTC