Thailand plans to sell 171.5 billion baht ($5.6 billion) of government bonds in the April-June quarter plus 125 billion baht in the following quarter and will take on bank loans to finance flood-related projects, a senior Finance Ministry official said on Thursday.
The bond issuance is part of a previously announced plan to auction 525 billion baht of government bonds in the current fiscal year to September 30 to help finance the budget deficit, Chakkrit Parapuntakul, director-general of the Public Debt Management Office, told Reuters in an interview. However, Chakkrit said the ministry would not allocate all bonds at auctions if bids were unfavourable. Any bonds left unsold would not be offered at later auctions in the fiscal year.
"We will sell them based on the market rate. We don't have to sell them all if demand yields are unacceptable," he said, adding the ministry could replace the unsold amount with treasury bills or savings bonds, which are sold to small domestic investors.
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