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The Bank of Thailand yesterday declared December 30 a holiday, which would extend the New Year holiday period for banks to five days.

Prior to this, the maximum holiday period for financial institutions in Thailand had been four days, to ensure no business disruption.

The government earlier declared December 28-31 and January 1 as the New Year holiday period for government agencies and state enterprises. Most companies’ holiday period depends on the working days of financial institutions.

In an announcement, the central bank said its decision would support the tourism industry and boost the overall economy.

Announcing the extended holiday period in advance would allow enough time for adjustment among companies, it said, adding that the move should not have a significant impact on the financial sector and the economy.

The bank also noted that although December 30 had been declared a holiday, financial institutions could still consider opening some branches, like those at shopping malls, on the condition that their employees were properly taken care of.

Push for speedier budget

disbursement this quarter

The Finance Ministry expects the disbursement of at least Bt700 billion from October to December, the first three months of the 2014 fiscal year, in an effort to boost final-quarter economic growth.

Manas Jamveha, director-general of the Comptroller General’s Department, said the chiefs of government units across the country would convene in Bangkok on November 4. Deputy Prime Minister and Finance Minister Kittiratt Na-Ranong will chair the meeting, held to encourage the acceleration of budget disbursement.

"We need to speed up disbursement to boost the economy in the last quarter. The government has made it clear that within February 14, 2014, all government units must disburse all the allocated investment-related budgets. Failure to do so would affect their budgets in 2015," he said.

As of October 18, budget disbursement was valued at Bt144 billion, including the Bt691-million investment budget.

The government’s expenditure for the 2014 fiscal year, starting from October 1, is set at Bt2.525 trillion.

PTT pressing for rent-free

extension to lease on SRT land

The board of PTT recently instructed the company to negotiate with the State Railway of Thailand (SRT) to extend the company’s lease on the state agency’s land housing PTT’s headquarters for another 30 years – subject to the condition that PTT would not have to pay a rental fee, as requested by the rail agency, said Energy Ministry permanent secretary Suthep Liumsirijarern.

The 30-year rental contract expired in March, and the oil and petrochemical giant wants to extend the term by another 30 years.

The PTT board considers that the original contract between PTT and the SRT was made in a manner that is equivalent to PTT’s purchase of the land, therefore the company has no need to pay a rental fee for the renewal period, he said.

The Land Department has also acknowledged the contract, he added.

Suthep said that if PTT management failed to reach a satisfactory conclusion on the matter with the SRT, its board would ask the Energy Ministry to discuss the case with the Transport Ministry on a ministerial basis.

Energy Minister Pongsak Ruktapongpisal earlier said PTT should not have to pay a land rental fee for the contract extension, as it had already paid a one-time amount to the SRT as if it had bought the land.

Given that the SRT land cannot actually be purchased, the original contract was therefore drawn up in the manner of a long-term lease contract. Once the contract expired, the SRT should therefore automatically renew the contract for PTT without any conditions, he said.

PTT and SRT discussed the contract extension earlier this month, but failed to reach a satisfactory conclusion.

According to a study by an SRT adviser hired to evaluate the rate of return for the plot, the rental fee the agency should gain from PTT for another 30 years is Bt1.792 billion – with PTT being required to pay such an amount on a further one-off basis in exchange for contract renewal.

The SRT wants PTT to pay such a fee by the end of December, with retroactive effect from March.

PTT, however, wants to pay only Bt800 million for the contract renewal, of which Bt200 million is for the plot itself and Bt600 million for the lease of buildings on the land.