Government approves THB5 billion transfer to repay FIDF fund
The approval of payment to the Financial Institutions Development Fund (FIDF) brings total repayments over 13 years to THB1.14 trillion, with the remaining debt at THB490 billion.
- The Thai Cabinet has approved a THB5 billion transfer to a reserve account for debt repayment.
- These funds are designated for repaying the principal and interest of the Financial Institutions Development Fund (FIDF) in the 2026 fiscal year.
- The transfer was proposed after the FIDF confirmed it had sufficient liquidity to make the payment without impacting its operations.
- This payment is part of a larger, ongoing effort to reduce the FIDF's outstanding debt, which was THB494.06 billion as of September 2025.
A news report from the Government House revealed that the Cabinet meeting recently approved the Ministry of Finance's proposal to transfer an additional amount of THB 5 billion from the funds of the FIDF into the Savings Account for the Repayment of Principal of Loan to Compensate for the Losses of the FIDF for the fiscal year 2026.
The FIDF reviewed its cash flow estimates for the 2026 fiscal year and determined that it would have sufficient liquidity after reserving related expenses to make a THB5 billion payment to repay FIDF 1 and FIDF 3 debts.
The FIDF's management committee then recommended submitting this proposal to the Cabinet for approval, allowing the fund to transfer the amount in stages based on available liquidity.
Previously, the Cabinet had approved 26 transfers to the FIDF for debt repayment, with THB15.82 billion transferred in the 2025 fiscal year alone.
The outstanding principal debt of the FIDF stood at THB494.06 billion as of September 30, 2025, down from the original debt of THB1.14 trillion, which the Ministry of Finance had borrowed to support the fund's operations under the Financial Institutions Development Fund Act of 2012.
Between February 2012 and September 2025, the debt repayment amounted to THB644.25 billion in principal, THB396.28 billion in interest, and THB13.6 million in management fees.
