Thailand's cabinet approved Tuesday a six-year government savings bonds issue worth up to 100 billion baht ($3 billion) in late March, bigger than earlier projected, to refinance loans borrowed for stimulus spending. The issue is part of the government's plan to sell 170 billion baht of savings bonds in the current fiscal year starting October 1 to help finance 1.43 trillion baht ($43 billion) in stimulus spending over three years.
The issue will be offered first to Thai citizens aged at least 60 on March 29-30 with a maximum investment of 1 million baht ($30,150), Watchara Kannikar, a government spokesman, told reporters. The bonds would later be offered to Thai citizens and residents of all ages March 31-April 2, he said.
They are unavailable to non-resident investors. Coupons would be decided later, Watchara said. Last month, Finance Minister Korn Chatikavanij said the government planned to sell 50-80 billion baht of savings bonds. One-year fixed deposits pay about 1 percent and savings rates are just 0.5 percent at major banks.