BANGKOK, Sept 29 (Reuters) – Thailand’s cabinet has approved 1.26 trillion baht ($37.5 billion) in new borrowing for the 2027 fiscal year starting in October, the finance ministry said on Tuesday.
The ministry also said in a statement that the country’s public debt ratio was projected to reach 69.7% of GDP by the end of the fiscal year ending September 2027, close to the official ceiling of 70%.
• The new borrowing plan includes 200 billion baht for energy transition projects under a broader borrowing decree, the ministry said.
• The government plans to issue up to 1.28 trillion baht of government bonds during the fiscal year, Jindarat Viriyataveekul, head of the Public Debt Management Office, told reporters. The figure was previously reported by Reuters.
• It plans to increase short-term borrowing and use instruments such as treasury bills and term loans while long-term bond yields remain elevated, Jindarat said.
• It will refinance shorter-term borrowing into longer-term debt once long-term bond yields decline, she said, adding that higher yields would not affect government borrowing costs.
• The government’s average borrowing cost is currently around 2.6% and is expected to stay unchanged in the coming fiscal year, she said.
• Finance Minister Ekniti Nitithanprapas told Reuters last week that he expected the economy to grow 2.5% in 2027, driven by investment-led policies.
($1 = 33.57 baht)
(Reporting by Kitiphong Thaichareon and Orathai Sriring; Writing by Martin Petty; Editing by John Mair)
