Thai private sector debt runs to $72b

Thai private sector debt runs to $72b

BANGKOK (AFP): Thailand's private sector foreign debt stands
at $72 billion, with about 50 percent of the sum owed to Japanese
creditors, Finance Minister Tarrin Nimmanahaeminda said
yesterday.

Officials have said the country's official foreign debt is
US$39 billion, with $37 billion in short term debt to be repaid
over the next 12 months.

Tarrin was speaking before leaving on an official visit to
Japan during which he will discuss crucial loan rollovers and
Bangkok's plan to ease unemployment with the help of official
Japanese bodies.

The bodies include the Overseas Economic cooperation Fund
(OECF) and the Japan Export and Import Bank, whose support is
crucial for Thailand's mission to work.

Siam Commercial Bank president Olarn Chaiprawat, representing
the private sector, will negotiate the roll-over of debts with
Japanese creditors.

Olarn may also discuss with creditors the swapping of dollar
loans into yen-denominated loans as the baht and yen fall against
the greenback, he said.

Tarrin said the dollar-yen loans swap, if sealed, would
benefit the Thai private sector due to the low interest rate on
yen loans and the low exchange rate risk.

He stressed that the baht and yen were moving "in the same
direction." The comments came a day after the baht plunged to its
lowest ever point of 49 to the dollar, compared to 25.79 before
its flotation in July.

He also revealed the government planned to issue bonds in
dollars to raise funds from domestic and overseas Thais to help
ease the country's tight liquidity situation.

"There will be a mini road show next month for Thais living
overseas," he said, but did not provide details about the bond-
issue program.

However, he said the Government Savings Bank was studying the
bond-issue plan.