Thai government to issue new bonds

BANGKOK, May 22 (TNA) - The Thai government, through the Ministry of Finance, is considering to issue new bonds and sell shares in local firms and state enterprises, worth approximately 100 billion baht, to clear state debts, worth over 720 billion baht. Finance Minister Sommai Pasi told journalists of the plan on Friday, saying that his ministry is, thus, considering issuing a special law to enable the issuance of the new government bonds. Sommai revealed that the proceeds will be used in clearing the government’s debts, worth more than 720 billion baht. Sommai acknowledged, of the total debts, 520 billion baht is from the previous government's rice-pledging scheme, while the rest are debts owed by the State Railway of Thailand (SRT), the Bangkok Mass Transit Authority (BMTA) and the Social Security Fund (SSF). The finance minister projected that the special law should be issued over the next two months, after which it would be forwarded to the Cabinet and the National Legislative Assembly (NLA) for further consideration and approval. According to the finance minister, the issuance of the special law is aimed to lessen the government’s expenditure budget on debt settlement, which is normally set at 64 billion baht annually, but for the fiscal 2016 year alone, which begins on October 1, 2015, the government has already set aside about 61 billion baht to pay for only principal, excluding interest, of public debts, which appears to be a big burden for the government. The finance minister noted that the issuance of the special law could also allow the Thai government to postpone its debt payment. (TNA)