Cabinet to decide on BMTA debt overhual
The Transport Ministry today will seek Cabinet approval for the Bangkok Mass Transit Authority to borrow an additional Bt5.4 billion so that it can overhaul its debt repayments. Approval would ensure that the BMTA can meet next year's retained-debt repa
Some Bt226 million would be used for reducing the agency’s interest-rate burden.
The proposed borrowing is part of the BMTA’s business restructuring plan.
The BMTA needs more capital to reduce its accumulated debt, which totals Bt76 billion for the period from 1977 until May 31 this year. Its annual income averages Bt21 billion.
A Government House source yesterday said the Transport Ministry would guarantee the borrowing, Bt3.6 billion of which would be for fuel cost repayments.
The BMTA restructuring plan aims to strengthen its operating efficiency and reduce accumulated debt, as well as support its early-retirement programme.
On September 11, the Cabinet agreed that the agency could borrow Bt14.66 billion for principal and interest-rate repayments for next year. Of the total, Bt11.68 billion is for repaying principal.
However, the BMTA still has retained debt of Bt5.4 billion in respect of its fuel and repair services, an amount that has to be repaid next year.
If it were to default on the fuel debt, the agency would be charged |the minimum overdraft rate of 7.375 per cent by the lender, Krung Thai Bank.
It would also be charged the minimum lending rate plus 1.1 percentage points, together with interest of 8.4 per cent, if it defaulted on the repair and maintenance debt.
