Foreign funds could finance infrastructure

INVESTMENT

Foreign funds could finance infrastructure

Published: 5 Mar 2013 at 00.00
Newspaper section: Business

Local policymakers hope to finance a portion of infrastructure spending with foreign funds and encourage outward investment in a bid to ease the volatility of foreign capital flows.

Narongchai Akrasanee, chairman of MFC Asset Management, said the country should attract long-term investors to finance big transport projects under the government's 2-trillion-baht borrowing plan.

"Long-term foreign investors would find the 3% yields of 15-year government bonds attractive," he said. "While the government wanted to channel local liquidity to finance these projects, bonds with such a long-term maturity are unlikely to draw much interest from banks."

This article is older than 60 days, which we reserve for our premium members only.You can subscribe to our premium member subscription, here.

Forum

Your comments

boons
Post : 662
Send message

Discussion 1 : 05 Mar 2013 at 13.101
Post this to my Facebook
Let me get this straight: At a time when Thailand is awash in unprecedented foreign liquidity. And stimulus measures and infrastructure spending are at unsustainable highs. The plan is to go into DEBT to finance even more spending? ...I see very dark clouds on the horizon.

And this: "Mr Narongchai, who is a member of the Bank of Thailand's Monetary Policy Committee, said foreign capital inflows should rise as economic prospects in Asia's developing economies outpace those of developed ones."

...Right up until that stops happening.
Like dislike 1 people liked / 0 people disliked this comment

Foreign funds could finance infrastructure | Bangkok Post: business