The Ministry of Finance has expressed confidence in its ability to manage the national debt, whose average duration is about 9 years and one month.
The statement was made by Deputy Government Spokesperson Traisulee Traisoranakul following this week’s Cabinet meeting. She reported that the Cabinet approved the loan for government debt restructuring, which has a repayment period exceeding 12 months within the 2022 fiscal year.
The Public Debt Management Office had taken a loan amounting to 1.2 trillion baht, which accounts for 87% of the debt management plan for the fiscal year. Out of this, 53%, or 643.3 billion baht, has a repayment period exceeding 12 months.
The purpose of this debt restructuring loan is to manage the government’s debt and reduce the concentration of short-term debt. As of the end of the fiscal year 2022, the total outstanding state debt was 9.16 trillion baht. Short-term debt, which did not exceed one year, accounted for 6.13%, or 561.3 billion baht, while long-term debt, of one year or more, amounted to 8.6 trillion baht, or 93.87%. The majority of the debt, therefore, has an average life of 9 years and one month.
The Ministry of Finance confirmed that the state can manage the debt ratio, even when combined with state-owned enterprise loans that the state bears. This is in line with the risk indicators set for debt restructuring under the medium-term public debt management strategy for the next 5 years. (NNT)
