PDMO hit by pledging rollover | Bangkok Post: business

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PDMO hit by pledging rollover

Interest amounts to B20bn per year

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The Public Debt Management Office (PDMO) must shoulder an average interest expense of 20 billion baht a year from a rollover of 500 billion baht debt incurred from the previous government's rice pledging scheme. 

The office needs to roll over the 500-billion-baht debt until it is paid off, said the PDMO's bond market adviser Suwit Rojanavanich, adding it carries an average interest rate of 4%, or around 20 billion baht per year.

The Pheu Thai government's rice subsidy, which offered a pledging price 40-50% above the market price, cost 878 billion baht to the fund since it was unveiled in the 2011-2012 main crop and around 500 billion baht worth of debt is left over.

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