BANGKOK, Jan 5 – The Finance Ministry and the state-operated Bank for Agriculture and Agricultural Cooperatives (BAAC) will each issue special savings bonds with a combined value of Bt100 billion to be on sales from January 12 to 23
Finance Minister Sommai Phasee early today presided at the signing of a Memorandum of Understanding on the sale of the special savings bonds worth a total of Bt50 billion to be issued by Finance Ministry to mature in 10-years.
The average interest rate will be 4 per cent.
Sales will be made through four commercial banks including the state-owned Krung Thai, Bangkok, Kasikorn and Siam Commercial banks.
Bonds to be issued by BAAC carry a five-year maturity with the total value of Bt50 billion.
The coupon rate is 3.8 per cent with sales to be offered at every BAAC branch.
He expressed optimism that that the special public bond offering would receive interest because of the strength of the government’s monetary and fiscal positions. This is despite the government preparing a deficit budget for the 2016 Fiscal Year, which started October 1, is higher by 2 per cent from the 2015 Fiscal Year.
Mr Sommai said it was necessary for the government to prepare a budget deficit due to several investment projects.
