GSB to lend B7bn to THAI

GSB to lend B7bn to THAI

The state-run Government Saving Bank (GSB) will lend seven billion baht to Thai Airways International Plc (THAI) to improve its liquidity, with replayment due within one year, the Finance Ministry announced.

Permanent secretary for finance Rangsan Sriworasart said it was suggested the GSB lend the requested amount to THAI without getting a letter of approval from Finance Ministry, as both organisations were the state enterprises.

The national carrier would normally issue a formal document ensuring the bank that the amount will be paid back within one year or earlier if THAI is able to find other source of funds to support its liquidity.

“The Finance Ministry views that if an approval letter is issued in this case, the ministry may have to issue documents for state enterprises to borrow from financial institutes. This procedure is not necessary and especially in the case of borrowing from the GSB, which is also a state enterprise,’’ he said.

Acting THAI chairman Areepong Phucha-um, the permanent secretary for energy, said the loan was solely for liquidity purposes as the company has no financial troubles.

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