webfact Posted May 8, 2017 Share Posted May 8, 2017 Thailand delays launch of $2.9 bln infrastructure fund to Q3 BANGKOK: -- Thailand has delayed the launch of a 100-billion baht ($2.89 billion) infrastructure fund to September this year, the latest in a series of delays in the fund's launch, a government official said on Monday. The "Thailand Future Fund" was first announced in 2015 as the junta sought to finance investment projects to lift economic growth. The fund's launch has since faced repeated delays. The most recent delay is because the transport ministry and a relevant agency are concerned over the high cost of launching the fund, Chanvit Nakburee, deputy director-general of the State Enterprise Policy Office, told reporters. Finance Minister Apisak Tantivorawong previously said the fund would initially sell units worth 40 billion baht to 50 billion baht to Thai and foreign investors, with a return likely at 7-8 percent. Deputy Prime Minister Somkid Jatusripitak told reporters he had asked the finance ministry to look into the problem. However, the finance ministry is ready to launch the fund and is waiting for what the transport ministry will say, Chanvit said, adding the fund was needed for the country's development. Growth in Southeast Asia's second-largest economy has lagged its peers since the military seized power in May 2014 to end months of political unrest. ($1=34.63 baht) (Reporting by Kitiphong Thaichareon; Writing by Orathai Sriring; Editing by Sam Holmes) -- © Copyright Reuters 2017-05-09 Link to comment Share on other sites More sharing options...
wakeupplease Posted May 8, 2017 Share Posted May 8, 2017 Nothing to do with cash reserves then? Link to comment Share on other sites More sharing options...
colinneil Posted May 8, 2017 Share Posted May 8, 2017 Stuff the infrastructure, we need the money to buy the subs. Link to comment Share on other sites More sharing options...
ezzra Posted May 8, 2017 Share Posted May 8, 2017 8 minutes ago, colinneil said: Stuff the infrastructure, we need the money to buy the subs. And tanks and jetfighters and some more stuff that according to the PM, the public has no rights to know or have a say in..... Link to comment Share on other sites More sharing options...
leeneeds Posted May 8, 2017 Share Posted May 8, 2017 All above are correct, sometimes going with out is the best solution, it takes a strong willed leader to say SO, Link to comment Share on other sites More sharing options...
darksidedog Posted May 9, 2017 Share Posted May 9, 2017 Given that the Finance Ministry, 2 years down the track has done nothing, as it is still waiting for information from the transport Ministry, you have to put the continued delay down to simple incompetence. I don't know what they are doing trying to run a country. A piss up in a brewery would be beyond this rabble. Link to comment Share on other sites More sharing options...
Ricardo Posted May 9, 2017 Share Posted May 9, 2017 " with a return likely at 7-8 percent" That looks to me a very high return, for government-backed debt, would any more-knowledgeable posters care to comment ? IIRC the government were recently reported, as delaying the start of work on the Chinese medium-speed heavy-freight project, because they felt that the finance being offered was over-priced at about 3% ? Link to comment Share on other sites More sharing options...
Happyman58 Posted May 9, 2017 Share Posted May 9, 2017 No Money i wonder All gone to China to buy those subs for the little admiral so he can have some toys to play with Link to comment Share on other sites More sharing options...
elgordo38 Posted May 9, 2017 Share Posted May 9, 2017 7 hours ago, wakeupplease said: Nothing to do with cash reserves then? Hmm with that high a return it makes one wonder?? Link to comment Share on other sites More sharing options...
pentap Posted May 9, 2017 Share Posted May 9, 2017 Could the purchase of three submarines be one of the many possible reasons for the delays? Link to comment Share on other sites More sharing options...
Jogden Posted May 9, 2017 Share Posted May 9, 2017 14 hours ago, wakeupplease said: Nothing to do with cash reserves then? Nah, it's more like copying the Malaysians. Except instead of going through the cousins in Saudi they're looking for the right cousins in China or Macau to use. Link to comment Share on other sites More sharing options...
Srikcir Posted May 9, 2017 Share Posted May 9, 2017 13 hours ago, Ricardo said: because they felt that the finance being offered was over-priced at about 3% December 2015: China set an interest rate on loans to finance the dual rail project at 2.5%, but Thailand considered the rate too high and wanted below 2%. China argued that Thailand was now an upper-middle income country. July 2017: China proposed that for all four sections of the Bangkok-Nakhon Ratchasima route Thailand seek loans in the Yuan currency at an interest rate of 3.2%, whereas Thailand has expressed its wish to obtain the lowest interest rate available, preferably at 2%. Offering "Thailand Future Fund" at 6-7% return reflects a high risk compared to Chinese gov't financing (forget private investment then and go back to China) and moderate risk level, ie., compared to US 10-year BAA Corporate Bond (4.5-5%) or BBB (less than 4%). Less risk than junk bond paying 15-30%. Brazil 10-year government bond yields about 10%. However, given the current unresolved political situation in Thailand 6-7% might be somewhat low, ie., 7-10%. The government should self-financed the cost as the nation has sufficient GDP to support it. But that might reflect poorly on the government's management on the economy. Not good for the next election. Link to comment Share on other sites More sharing options...
Recommended Posts
Create an account or sign in to comment
You need to be a member in order to leave a comment
Create an account
Sign up for a new account in our community. It's easy!
Register a new accountSign in
Already have an account? Sign in here.
Sign In Now