Logo of Phnom Penh Post newspaper Phnom Penh Post - Thai push for CLMV to issue baht bonds

Thai push for CLMV to issue baht bonds

Thai push for CLMV to issue baht bonds

Thai Finance Minister Sommai Phasee has urged both the public and private sector in Thailand’s neighbouring countries – Cambodia, Laos, Myanmar and Vietnam – to issue baht-denominated bonds to raise funds for their infrastructure needs.

According to the Bangkok Post, the minister said the bond issuance would be in tune with his ministry’s intention to make the baht a widely used currency in those countries. Countries would be allowed to issue these bonds without a credit rating as long as they were guaranteed by their governments. Countries can also use credit ratings assigned by Thailand’s rating agencies instead of other international agencies, where there is a failure to get a government guarantee.

Mok Rady, head of the research and securities market development division at the Securities and Exchange Commission of Cambodia, said Cambodia has not yet shown interest in the appeal from its counterpart.

“Our market has not been as strong as others. We welcome the request; but it is not the right time for us to do that,” he said.

“We don’t reject it, but we can’t do it immediately because our regulations do not allow investing outside [of Cambodia]. It doesn’t mean that it prevents us, but it needs one other internal agreement on how to implement if we do that.”

Laos is the only country among the CMLV to have previously issued a baht bond, raising 9.59 billion baht ($293,000) of sovereign debt from Thailand, whereas EDL-Generation Plc floated bonds worth 6.5 billion baht in Thailand last October.

MOST VIEWED

  • US to ramp up sanctions after ‘flawed’ national polls

    At a press conference on Wednesday, the US State Department announced that it would expand visa sanctions on the Cambodian officials and individuals it deems responsible for “undermining democracy” in Cambodia. At the briefing, spokesperson Heather Nauert reiterated that the department regarded the July 29 elections

  • Final poll results confirm first single-party Assembly

    IN an unprecedented situation in Cambodian politics, the official results of the July 29 national elections have declared that the Cambodian People’s Party (CPP) will take all 125 seats in the National Assembly on the back of it receiving 76 per cent of the votes. The National

  • Chinese influence to sweep Kingdom?

    Growing Cambodia-China ties have seen the latter’s influence sweep across the Kingdom through increased investments and tourism. The Asian giant has become the leading source of foreign funds in Cambodia, fuelling the construction sector with huge casino and hotel projects. Much of the growth

  • Tourist arrivals up by 12%

    Cambodia welcomed more than three million foreign tourists in the first half this year, an increase of 12.7 per cent compared to the same period last year, official data from the Ministry of Tourism said. Leading the way in the rise were Chinese and Vietnamese tourists.