PDMO plans to issue savings bonds worth Bt104 billion in 2016
THE PUBLIC Debt Management Office expects to issue savings bonds worth a total of Bt104 billion in fiscal 2016, aiming to promote saving by people, encourage investment in quality debt instruments, and cope with the civil servants' Undo Act, said Suwit Ro
The government is expected to mobilise funds worth about Bt937 billion for debt restructuring in fiscal 2016.
Next month, those having rights granted under the Undo Act – a return to enjoying the rights granted under the original civil-servant Government Pension Act of 1951 – will receive money back. In June next year, special saving bonds issued since fiscal 2010 will mature.
To meet more demand for investment, the PDMO between October and January will launch the first bond issue worth Bt50 billion with three-year maturity to cope with the Undo rights. The second three-year bond issue worth Bt4 billion will be introduced between May and August 2016, aiming at the Money Expo. The third issue with five-year maturity will be worth Bt50 billion, likely in June 2016, when the special savings bonds mature.
The PDMO estimates that the government’s demand for fund mobilisation in fiscal 2016 will total Bt937 billion. Of that total, the first tranche will be borrowings for debt restructuring and the second will be new borrowings.
Of the total estimated Bt422-billion borrowings for debt restructuring, Bt104 billion will be used under the Public Debt Act (budget deficit), Bt188 billion for the Financial Institutions Development Fund decree, Bt80 billion for restructuring of debts guaranteed by the Finance Ministry, and Bt50 billion for restructuring in advance through bond swaps.
Of the total new borrowings, Bt390 billion will be to offset the budget deficit, Bt63 billion for loans to state enterprises, and Bt61 billion for replacement of external borrowings.
