Thailand seeks borrowings to fund state projects
Source: Time:2017-03-20 11:07:37
Finance Minister Apisak Tantivorawong(Photo: bangkokpost.com)
Finance Minister Apisak Tantivorawong: Borrowing will be the largest funding source for the Thai government’s 20 infrastructure projects, providing 60 percent of the total value of 1.7 trillion THB (48.1 billion USD)
For the rest, 20 percent will come from the public-private partnership (PPP) scheme, 10 percent from government’s budget, 2 percent from the Thailand Future Fund (TFF) through the initial public offering while the remainder will be raised from state-owned enterprises’ income.
The country’s public debt currently stands at 43 percent, which is still far below the Finance Ministry’s 60 percent threshold.
The Thai Finance Ministry has submitted an IPO filling for the TFF to the Securities and Exchange Commission (SEC). It is estimated that 100 billion THB (2.8 billion USD) shares will be offered to public in a couple of months.
In December 2016, the Thai cabinet approved the launch of the TFF, aiming to mobilise cash from the public for the state’s construction projects. The fund will help the government have more room to invest in infrastructure projects with lower investment returns.
The government will pay heed to spending on large-scale infrastructure development projects to lure more private investment in the Eastern Economic Corridor (EEC) as a boost to the economy.
Earlier, the cabinet also adopted a Finance Ministry proposal on personal income tax imposed on foreign workers at companies investing in targeted industries in the EEC.