Govt to attract investment capital through bonds

 

BANGKOK, 1 December 2016 (NNT) - Deputy Prime Minister Somkid Jatusripitak has revealed the government will try to attract investment to six provinces by issuing bonds worth more than 100 billion baht. 

Dr. Somkid said the government is trying to stimulate domestic investments, as the Thai economy has yet to fully recover. The Ministry of Finance is planning to attract investment capital to six provinces next year. 

Investments in these provinces will be carried out under a civil-state policy to improve the livelihoods of local residents. Provincial governors have been instructed to submit their investment proposals by January in order for the central administration to allocate funding. 

Loans from domestic financial institutions will be sought through bonds issued by the Ministry of Finance. If there are no unforeseen circumstances, the funding should be allocated in February. Dr. Somkid assured that the process will be short, as Thailand remains financially robust. 

The Deputy Prime Minister also said he believes the Thai economy will show considerable growth next year, despite external factors. Growth will mainly come from government investment in mega infrastructure projects.

 

-- nnt 2016-12-01

4 hours ago, webfact said:

The Deputy Prime Minister also said he believes the Thai economy will show considerable growth next year, despite external factors. Growth will mainly come from government investment in mega infrastructure projects.

Growth for growths sake or long term sustainable growth. All global economies are trying these flash in the pan stimulants but it adds little to the economy over the long term. It only presents an illusion of prosperity. Only big business can do that and they really don't care they are so busy feathering their nest. 

Yup! No problems. Investors just out there waiting to throw their money at the government bonds for next to nothing returns. Desperation is moving up a notch.

"Growth will mainly come from government investment in mega infrastructure projects".

No mention of where the mega money is coming from. 

why no mention of where to invest?  What rates I wonder?  What guarantees for the lenders?  First in line>?  Maybe just a good local place for Hi So money to rest and gather good interest with zero chance of default? 

Well, here in the USA I have a lot of bonds in my portfolios ranging from tax free municipal bonds in my regular brokerage account to other bonds and bond funds in my IRAs.  Individual Muni bonds, NEA, NUW, PRTAX, PZA, PRHYX, ILBT and I include PGX and PFXF that while being preferred stocks have a partial bond flavor to them.   I can't imagine any seriously large international investor buying into Thailand.  Maybe some investor group will round up people and pool the money, maybe some individuals will buy some stuff, but I don't see Thailand as a big income or growth market.  And the political and military situation doesn't leave a lot of protection for foreigners.  And as others above noted, there are no details about terms, rates, call provisions, insured or not insured, general obligation or specific project etc.  Will be interesting to see if anything makes the financial news

Once again, the Government of Thailand makes the colossal mistake of proposing -- in this case -- a 100 billion baht bond proposal without  running it by Thai Visa hoi polloi first.

16 hours ago, Brer Fox said:

Desperation is moving up a notch.

Bonds are moving up a notch in interest rates and bonds act in reverse. As interest climbs the bonds go down in value.