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

  • Diplomatic passports issued to foreigners to be annulled

    The Ministry of Foreign Affairs and International Cooperation will move to annul diplomatic passports issued to those not born in Cambodia. Analysts say the move may be in relation to reports that former Thai prime minister Yingluck Shinawatra used a Cambodian passport to register as

  • The hairy little heroes saving many lives in rural Cambodia

    IN RURAL Siem Reap province, rats dare to tread where no person will, as these hairy little heroes place their lives on the line each day for the good of the local community. The rodents are the most important members of a special team, leading

  • Hun Sen warns Irish MP of EBA ‘mistake’

    Prime Minister Hun Sen on Saturday told former Irish premier Enda Kenny, still a member of the EU nation’s parliament, that the 28-nation bloc should not make a “third mistake” regarding Cambodia by using the preferential Everything But Arms (EBA) agreement to “take 16 million

  • PM warns EU and opposition on 34th anniversary of his rule

    HUN Sen reached the milestone of 34 years as Cambodian prime minister on Monday and used the groundbreaking ceremony for a new ring road around Phnom Penh to tell the international community that putting sanctions on the Kingdom meant killing the opposition. “Please don’t forget