Finance Ministry in talks for THB30 billion loan to top up Oil Fuel Fund
The Finance Ministry will this month borrow THB30 billion from certain commercial banks to boost liquidity of the Oil Fuel Fund, a senior ministry official said on Tuesday.
Thirat Attanawanich, deputy permanent secretary for Finance, said the ministry was still in negotiations with several commercial banks, including Government Savings Bank and Krung Thai Bank. The ministry expects to wrap up the deal within this month.
Thirat said the loan amount would be THB30 billion, in line with the projected spending for fiscal year 2022 as planned by the Public Debt Management Office.
He said the Finance Ministry would borrow the full amount of THB30 billion but the Oil Fuel Fund would be topped up as required.
“The talks should be finalised this month. After we get the loan, we will gradually distribute it to the fund to boost its liquidity,” Thirat said.
He said the fund is now facing a deficit because the government has had to pay high amounts of diesel subsidies due to high global oil prices.
He said the fund needs more money in reserve for handling situations when global prices rise further and when the period of diesel excise tax cut ends on May 20.
As of May 8, the Oil Fuel Fund has a deficit of THB66.681 billion — THB33.258 deficit from diesel price subsidies and THB33.423 billion from LPG price subsidies. The fund has a cash balance of THB12.932 billion in its bank accounts.
