Finance Ministry bond issue to pay for budget deficit

0
392

BANGKOK, Nov 18 – The government is issuing Bt4 billion in savings bonds to offset the Bt250 billion budget deficit for this fiscal year, according to a senior Finance Ministry official.

Suwit Rojanavanich, deputy director general of the Public Debt Management Office (PDMO), said the three-year bonds will be offered between December this year and March 2014 at Bt1,000 per unit.

Purchases are limited at Bt2 million per buyer and the interest, which has yet to be announced, will be about 3 per cent, he said.

He said the PDMO has projected generating Bt71 billion from savings bonds in this budget year and it also planned to sell inflation-linked bonds to earn an additional Bt75 billion.

He said the offering of savings bonds is to pay for Bt250 billion deficit in this fiscal year, emphasising five-year bonds, while the number of three- and seven-year bonds will be reduced.

He said the PDMO will follow the instruction of Deputy Prime Minster/Finance Minister Kittiratt Na-Ranong to sell bonds in US dollars for a total Bt30 billion to overseas markets in preparation for the Bt2 trillion investment on infrastructure development projects.

A bill seeking to borrow Bt2 trillion was already passed by the House of Representatives, pending Senate approval.