Special law to tackle Bt700 bn public debt
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The Public Debt Management Office (PDMO) proposes a special law to handle the government debt owing to four state agencies worth totally Bt700 billion.
Thirat Atanavanich, the deputy director general of the office, said the draft law will soon be submitted to Finance Minister Sommai Phasee and Deputy Prime Minister MR Pridiyathorn Devakula.
The draft law will specify that the debt must be repaid in 20 years.
The four state agencies involved are Bank for Agriculture and Agricultural Cooperatives which handles the rice-pledging scheme; the State Railway of Thailand; the Bangkok Mass Transit Authority; and the Social Security Office. The government has not yet made full contribution to the Social Security Fund.
Thirat said that the law also specifies that SRT and BMTA must restructure their businesses as outlined by the Superboard. They are barred from building new loans.
