February public debt hits 6 trillion baht

 

BANGKOK, 14 April 2017 (NNT) - The Public Debt Management Office (PDMO) has reported a jump in public debt in February while announcing its plan to begin a new fund-raising campaign next month. 

According to the PDMO Bond Market Advisor, Thirat Atanavanich, the outstanding public debt as of 28th February had risen by 30.5 billion baht to 6.09 trillion baht when compared with the previous month, representing 41.96% of the national gross domestic product. The government’s debt in February jumped by 40 billion baht to 4.63 trillion baht due to its decision to borrow money to offset the budget deficit and manage the public debt that rose by 46.8 billion baht. 

Debt incurred by state enterprises lowered by seven billion baht to 972 billion baht as domestic and foreign debts dropped by 4.4 and 2.5 billion baht respectively. Debts of state enterprises which are government guaranteed financial institutions fell by 3.2 billion baht to 460 billion baht. Debts incurred by state agencies declined by 155 million baht to 19.3 billion baht thanks to debt repayments that surpassed loans. 

Uppama Jaihong, director of the Bond Development Market Bureau meanwhile, spoke about the bureau’s planned bond switching transactions involving 90 billion baht between May and September. The move is to urge investors to swap their existing bonds with new long-term counterparts in order to mobilize funds and improve the financial fluidity of the bond market. The Bond Development Market Bureau and the Bank of Thailand will also jointly issue electronic bonds in the third and fourth quarters of the fiscal year 2017. 

Ms. Uppama added that the Ministry of Finance had instructed the PDMO to keep a close watch on capital transfers and follow movements of the US Federal Reserve, including its plan to raise the interest rates twice in the second half of the year which might lead to volatility in capital and financial markets.

 

-- nnt 2017-04-14

Alarm bells not registering yet !

forgo the submarine and tanks 

like any person sometimes you have to go without.

How will the country be better off with these purchases

I must be missing something.

 

That public debt is "only" 42% of GDP is misleading since the public sector is actually surprisingly small in Thailand.

 

Public debt is actually north of 250% of total tax revenue. 

As the last finance minister said. White lies are ok!

30 minutes ago, clockman said:

As the last finance minister said. White lies are ok!

I think that only applies to little ones. Steaming great big ones... maybe not.

10 hours ago, webfact said:

the outstanding public debt as of 28th February had risen by 30.5 billion baht to 6.09 trillion baht when compared with the previous month, representing 41.96% of the national gross domestic product.

The new debt increase shouldn't be a problem with Thailand expected to gain 5-7% GDP growth for 2016 predicted for the other ASEAN countries.

Wait .... Bank of Thailand recently forecasted only 3.4% with rising inflation. Looks like BOT will need to perform some currency manipulation to make debt cheaper.

9 hours ago, ExpatOilWorker said:

That public debt is "only" 42% of GDP is misleading since the public sector is actually surprisingly small in Thailand.

 

Public debt is actually north of 250% of total tax revenue. 

Agreed.  It looks enviable.  But when you look around there's not much to brag about.

10 hours ago, ExpatOilWorker said:

That public debt is "only" 42% of GDP is misleading since the public sector is actually surprisingly small in Thailand.

 

Public debt is actually north of 250% of total tax revenue. 

I don't get it.. for the UK public debt is 92%, of GDP in the Netherlands 65% or something, in the us around 100%.. 

 

US has 20 trillion debt and 2,29% trillion tax income.. that is  870% of the total tax revenue 

http://federal-budget.insidegov.com/l/119/2016

7 minutes ago, robblok said:

I don't get it.. for the UK public debt is 92%, of GDP in the Netherlands 65% or something, in the us around 100%.. 

 

US has 20 trillion debt and 2,29% trillion tax income.. that is  870% of the total tax revenue 

http://federal-budget.insidegov.com/l/119/2016

The point is that while there is little public debt, there is also very little being spent on what is obviously much needed public projects.  Thailand seems centuries behind Netherlands for instance, who cottoned on to the fact that dykes were probably a good idea in a low lying land.

 

Thus what seems enviable is anything but.  USA and Uk have big debts, but just look about in the average town.  They have a heck of a lot to show for those debts.

20 minutes ago, robblok said:

I don't get it.. for the UK public debt is 92%, of GDP in the Netherlands 65% or something, in the us around 100%.. 

 

US has 20 trillion debt and 2,29% trillion tax income.. that is  870% of the total tax revenue 

http://federal-budget.insidegov.com/l/119/2016

http://www.visualcapitalist.com/by-this-measure-the-u-s-has-the-2nd-highest-national-debt

14 minutes ago, mommysboy said:

The point is that while there is little public debt, there is also very little being spent on what is obviously much needed public projects.  Thailand seems centuries behind Netherlands for instance, who cottoned on to the fact that dykes were probably a good idea in a low lying land.

 

Thus what seems enviable is anything but.  USA and Uk have big debts, but just look about in the average town.  They have a heck of a lot to show for those debts.

They might have a lot to show for the debts but it still does not say anything, you always look as debt to relation to GDP not what you got for it. Because what you got for it already accounts for your better GDP (if the investments were good). So I still don't get your points.. what you got for it is already accounted for int he GDP. 

 

Example.. those clog hoppers paid for a transport track to Germany and the government paid for it.. this investment makes the GDP higher as more income is generated.. thus no need to look at what you got for the money but only at your GDP. All wise investments are already accounted in GDP. 

14 hours ago, webfact said:

spoke about the bureau’s planned bond switching transactions involving 90 billion baht between May and September. The move is to urge investors to swap their existing bonds with new long-term counterparts in order to mobilize funds and improve the financial fluidity of the bond market.

What exactly does that mean? 

 

And does it benefit the investors or the market?

 

 

3 minutes ago, Bluespunk said:

What exactly does that mean? 

 

 

increase liquidity.  At a guess