Thai govt plans to sell stakes in firms to reduce debt
Friday, 22 May 2015
BANGKOK: Thailand plans to sell government stakes in firms to help reduce debt, the finance minister said on Friday.
A special law to borrow about 700 billion baht ($21 billion)to repay debt at state enterprises, announced this week, is expected to go before the cabinet over the next two months, the minister, Sommai Phasee, told reporters. "The government has to seek more money to cut debt of 720 billion baht and what can be done is to sell stakes in businesses which are not useful," he said, adding that details would be decided later.
Of the debt, about 513 billion baht is from a failed rice-buying scheme of the previous government and the rest from some other state agencies, Sommai said.
The 20-year debt repayment plan will be financed by loans and 3-10 year-government bonds, with capital and interest costs expected to be about 64 billion baht a year, he said.
Without the plan, the government would have a debt burden of about 120 billion baht in each fiscal year, he said.
thestar.com.my
Friday, 22 May 2015
BANGKOK: Thailand plans to sell government stakes in firms to help reduce debt, the finance minister said on Friday.
A special law to borrow about 700 billion baht ($21 billion)to repay debt at state enterprises, announced this week, is expected to go before the cabinet over the next two months, the minister, Sommai Phasee, told reporters. "The government has to seek more money to cut debt of 720 billion baht and what can be done is to sell stakes in businesses which are not useful," he said, adding that details would be decided later.
Of the debt, about 513 billion baht is from a failed rice-buying scheme of the previous government and the rest from some other state agencies, Sommai said.
The 20-year debt repayment plan will be financed by loans and 3-10 year-government bonds, with capital and interest costs expected to be about 64 billion baht a year, he said.
Without the plan, the government would have a debt burden of about 120 billion baht in each fiscal year, he said.
thestar.com.my
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