Early yen loan repayment saves MRTA's expenses
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The Cabinet gave a green light for Mass Rapid Transit Authority of Thailand to swap its yen-denominated loan and make early loan repayment to Japan International Cooperation Agency (JICA), to cash in on the baht appreciation against Japanese yen.
According to Transport Minister Chadchart Sittipunt, the currency swap and early repayment of the Bt136.998 billion yen or Bt41.55 billion will save MRTA’s interest expense by Bt3.73 billion.
MRTA borrowed the amount to finance the construction of the Blue Line electric train line. When the loan contract was struck, the baht was at 34-36 per 100 yen, against below 30 at present.
“This will reduce foreign loan exposure and reduce the budget burden. The baht appreciation has resulted in the forex gain,” the minister said.
The Cabinet also approved in principle for a currency swap for the Bt16.09 billion loan for the Purple Line.
