The Finance Ministry has adopted a new fiscal policy of issuing savings bonds instead of inflation-linked bonds, a senior official said last Friday.
Permanent Secretary for Finance Areepong Bhoocha-oom said the government has generated Bt40-50 billion from inflation-linked bonds which have attracted foreign investors.
The Finance Ministry will from now on issue savings bonds for Thai people, he said, adding that the savings bonds will help cushion budget deficit and soften the strengthening baht.
Savings bonds are normally purchased by Thais at 80 percent and foreigners at the maximum of 20 percent, he said.
Areepong said the government will refrain from issuing any harsh measures as the baht weakened.
The majority of capital inflow since early this year went to the bonds market while the volumes in the stock and property markets were not that high, he added.
Foreign investors look at Thailand as a secure market with high returns especially in the property and bonds markets, he said.
