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Govt to sell Bt5 billion bonds to public as ‘New Year’s gift’

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Govt to sell Bt5 billion bonds to public as ‘New Year’s gift’

By The Nation

 

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The government is issuing Bt20 bonds for sale to the public as a New Year gift for individuals and seniors in order to support the ageing society through higher returns, the Public Debt Management Office (PDMO) said.

 

PDMO director-general Patricia Mongkhonvanit said that Bt5 billion worth of bonds will go on sale initially while another Bt15 billion will be government savings bond.

 

“We’re ensuring that these New Year’s bonds secure high returns to convince more investors and promote a culture of savings,” Patricia said.

 

She said the government will also raise another Bt5 billion from issue of bonds.

 

The PDMO will closely monitor the bonds market where the interest has been on a downward trend, Patricia said, adding that the issue of bonds was aimed at motivating Thais to save more as bank savings rates in Thailand were quite low.

 

Source: https://www.nationthailand.com/news/30378424

 

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-- © Copyright The Nation Thailand 2019-11-18
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3 hours ago, bendejo said:

"come along, kiddies, help fill Santa's sack with money!"

 

 

 

They pay interest, unless the conspirators are suggesting the Thai government would default on them and all the consequences of that - which would take your paranoia to a whole new level!

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Sometimes it's difficult to drink coffee in the morning while reading such news.. 🥴

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The Thai Government merrily redefining the meaning of "gift"

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Obviously very concerned about Saudi Arabia putting Aramco on the stock market next year and all the investors selling off all the Govt bonds to buy shares which could spell the downturn of the Thai baht , such a huge sell would be a big blow to the economy .

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 In Baht we trust....

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1 hour ago, Misterwhisper said:

'Tis the season to be jolly... where you're actually allowed to PAY for the GIFTS you receive.

 

Also wondering what the government-guaranteed yield on a 20-baht bond is. 15%? 20%? That would make a whopping 3 to 4 baht profit per year. You'd need to purchase a major proportion of these 5 billion bonds in order to have any relevant financial benefit, something like 50,000 to 100,000 bonds at a total face value of between 1 and 2 million baht. And who among the truly needy does have that kind of money to spend? 

 

Well, you raise the valid point of inquiring as to what the actual coupon rate will be. Seems a bit silly to have this kind of press conference without at least an indication of a range or minimum expected interest rate doesn't it !

 

I do think your example is highly optimistic though my friend.

 

A quick Google indicates current 5 year Thai Government bonds are around a 1.5% coupon rate.

I guess that may add a few extra basis points on top for this 'incredible and once in a lifetime investment opportunity'. 

I suppose it betters the utterly pathetic bank interest rates but it's hardly going to generate 'wealth', especially when considering inflation, currently around 1% but forecast to creep upwards in coming years...would you really want to tie up your funds for a number of years at those rates ?

Edited by realfunster
interest rate change
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6 hours ago, webfact said:

adding that the issue of bonds was aimed at motivating Thais to save more as bank savings rates in Thailand were quite low

If bank savings rates were even somewhat reasonable, would that not motivate people to save more? Banks have become the epitome of greed!

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What are the terms of the bonds?  What interest rate?  Tax free?  What are the durations?  Annual or semi annual payment of interest?  Is there any sort of underlying bond insurance or is one just supposed to trust the government agency(s)?

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And does this mean the Elite Thai will now bring back their foreign exchanges then to make more money? I do not see how this helps the common Prawit or Prawina or the government if they pay out more than they get.. 

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