- Siam Commercial Bank has rolled out 'SCB My Home My Cash', a personal loan backed by a borrower's home. It provides up to Bt5 million in credit with a maximum 15year period and interest starting at the minimum retail rate - currently 6.45 per cent.
- Krung Thai Bank will put more than 1,500 nonperforming assets worth Bt2.5 billion on sale at the 20th Housing & Condo Festival tomorrow and Sunday at the Queen Sirikit National Convention Centre. Those who purchase its NPAs at the fair will get a mortgage at zero interest for the first year and then the minimum lending rate minus 0.25 percentage point throughout the remaining term. The bank's MLR now stands at 5.85 per cent.
The bank will finance up to 110 per cent and requires a minimum deposit of Bt10,000.
- GH Bank offers mortgages with a zero down payment or zero interest rate for the first year for takers of its NPAs at the 20th Housing & Condo Festival. The bank will make 50 properties available at the fair at a maximum disฌcount of 20 per cent.
- United Overseas Bank (Thai) has unveiled the UOB Visa Debit Card with two features - one UOB Rewards Plus point for every Bt20 spent and a free monthly statement to moniฌtor spending.
- UOB Asset Management is launching an initial public offering of UOB Korean Bond 12/1 until October 8. The fund has a policy to mainly invest in South Korean government bonds and all investment is fully hedged against foreignexchange risk. The minimum subscription is Bt10,000.
- Asset Plus Fund Management is launching the initial public offering of ASPSmart 2 until October 8. The twoyear fund has a polฌicy to invest in big marketcap stocks, includฌing energy, banks, communication and stocks benefiting from the government's Thai Khemkhaeng scheme. The fund features auto redemption when net asset value increases every Bt0.50 per unit.
- Manulife Asset Management offers special promotions to those who invest in its MS Core LTF or MSFLEX RMF until the end of the year. Those who buy into the company's LTF and RMF at Bt50,000 will get Bt400 cashback and an organiser, while a Bt100,000 investment means Bt800 cashback and an organiser, Bt150,000 means Bt1,200 cashback plus an organiser, Bt200,000 means Bt1,600 cashback plus a G2000 bag, Bt250,000 gives entitlement to Bt2,000 cashback plus G2000 bag, and Bt300,000 to Bt2,400 cashback plus G2000 bag. Investment of Bt350,000 leads to Bt2,800 cashback, Bt400,000 to Bt3,200 cashback, Bt450,000 to Bt3,600 cashback, and Bt500,000 to Bt4,000 cashback - all of these also entitling the investor to a G2000 bag.
-TMB Asset Management is launching TMB South Korean Treasury Fund Series 33 and TMB South Korean Treasury Fund Series 35 until Monday. Both funds have a policy to invest in South Korean government bonds and treasury bills, and all investment is fully hedged against foreignexchange risk. TMB South Korean Treasury Fund Series 33, a nine-month fund, is expected to yield a return of 2 per cent per annum and TMB South Korean Treasury Fund Series 35, a six-month fund, is expected to provide return of 1.85 per cent.
-Tisco Asset Management offers special promotions to those who buy its retirement mutual funds and longterm equity funds until December 30. Those who invest in Tisco LongTerm Equity Fund, Tisco Dividend LongTerm Equity Fund, Tisco China India Retirement Fund, Tisco Equity Growth RMF and Tisco Flexible Portfolio RMF in amounts between Bt50,000 and Bt99,999 will receive a Bt200 Central Department Store voucher, while investors of Bt100,000 to Bt199,999 will get a Philips radio clock, between Bt200,000 and Bt499,999 will receive a Jabra Bluetooth, between Bt500,000 and Bt999,999 will get a Nokia 2323 handset, and from Bt1 million will receive 25satangweight of gold necklace.
Those who invest between Bt50,000 and Bt99,999 in Tisco Secured Fixed Income RMF and Tisco Fixed Income RMF will receive a foldable travel bag, between Bt100,000 and Bt199,999 will get a Bt200 Central Department Store voucher, between Bt200,000 and Bt499,999 will get a Philips radio clock and from Bt500,000 will get a Philips DVD player.
- ING Funds (Thailand) offers a special promotion to those who invest in ING Thai Greater China until October 15. Those in greater Bangkok will get a Bt500 Central gift voucher for every Bt200,000 in investment, while those in provincial areas will receive a Bt500 Tesco Lotus voucher. To be eligible for the vouchers, they must hold the investment for at least three months.
Saturday, October 31, 2009
Thursday, October 8, 2009
GPF posts 7.8% return for first nine months
The Government Pension Fund reported a 7.8% investment return for the first nine months of the year, thanks to recovering local and global financial markets.
The country's largest pension fund posted a return of 24.742 billion baht to Sept 30, a sharp turnaround from losses of 16.997 billion, a 5.17% decline, in the first nine months of 2008.
Net assets excluding reserves totalled 348.15 billion baht at the end of September. Annualised returns for the 12 months ending in September were 7.3%.
Sathit Limpongpan, the GPF chairman and permanent secretary of the Finance Ministry, said three factors drove the turnaround in the fund's performance.
First was the improving global economy, driven by expansionary fiscal policies. Second was the recovery of Thai exports, domestic consumption and private investment. Third was the turnaround in investor confidence and a rebound in the local capital market, including a nearly 60% gain for the Stock Exchange of Thailand index over the first three quarters of the year.
The GPF, which manages retirement assets for 1.17 million civil servants,maintained 69.3% of assets in Thai debt instruments as of Sept 30, with another 5.6% held in foreign debt.
Deputy secretary-general Variya Wongpreecha said Thai equities accounted for 8.9% of the fund's portfolio, with foreign equities of 8.6%, Thai property assets 4.1% and alternative investments 3.5%.
"Our investment strategy for the rest of the year will remain conservative,"she said."We will continue to closely monitor trends in the money and capital markets, as well as risk factors related to economic recovery."
"This includes the effect of fiscal stimulus programmes across the globe, oilprice and inflation trends and the possible tightening of monetary policy."
She said that in anticipation of higher interest rates next year, the GPF's bond portfolio now had an average duration of 2.4 years, compared with three years at the end of 2008. Average duration over the first nine months was 2.6 years.
Investors will typically shift their fixedincome investments to shorter terms if interest rates are likely to rise to mitigate their future risk.
Mrs Variya said domestic political stability remained another major risk factor that could undermine investor confidence going forward.
The GPF meanwhile is continuing its search for a new secretary-general.
Mr Sathit said the GPF's board will ask a recruitment agency retained to assist in the search to submit two new names for consideration within 30 days.
A previous list was rejected as the suggested candidates failed to meet GPF criteria. The process was complicated further when the chairman of the recruitment panel retired this past month,forcing the GPF to appoint a new panel.
Mr Sathit said the GPF would place ethics high on its list of criteria for the new secretary-general.
"The new secretary-general must not use the position to invest in the Stock Exchange of Thailand for personal gain.This is a new requirement that we have added for this appointment," he said.
The GPF board fired Visit Tantisunthorn as secretary-general in June for violating fund regulations. A Public Sector Anti-Corruption Commission investigation accused Mr Visit of personally investing in stocks also related to shares invested in by the GPF, a practice known in the industry as front-running.
The country's largest pension fund posted a return of 24.742 billion baht to Sept 30, a sharp turnaround from losses of 16.997 billion, a 5.17% decline, in the first nine months of 2008.
Net assets excluding reserves totalled 348.15 billion baht at the end of September. Annualised returns for the 12 months ending in September were 7.3%.
Sathit Limpongpan, the GPF chairman and permanent secretary of the Finance Ministry, said three factors drove the turnaround in the fund's performance.
First was the improving global economy, driven by expansionary fiscal policies. Second was the recovery of Thai exports, domestic consumption and private investment. Third was the turnaround in investor confidence and a rebound in the local capital market, including a nearly 60% gain for the Stock Exchange of Thailand index over the first three quarters of the year.
The GPF, which manages retirement assets for 1.17 million civil servants,maintained 69.3% of assets in Thai debt instruments as of Sept 30, with another 5.6% held in foreign debt.
Deputy secretary-general Variya Wongpreecha said Thai equities accounted for 8.9% of the fund's portfolio, with foreign equities of 8.6%, Thai property assets 4.1% and alternative investments 3.5%.
"Our investment strategy for the rest of the year will remain conservative,"she said."We will continue to closely monitor trends in the money and capital markets, as well as risk factors related to economic recovery."
"This includes the effect of fiscal stimulus programmes across the globe, oilprice and inflation trends and the possible tightening of monetary policy."
She said that in anticipation of higher interest rates next year, the GPF's bond portfolio now had an average duration of 2.4 years, compared with three years at the end of 2008. Average duration over the first nine months was 2.6 years.
Investors will typically shift their fixedincome investments to shorter terms if interest rates are likely to rise to mitigate their future risk.
Mrs Variya said domestic political stability remained another major risk factor that could undermine investor confidence going forward.
The GPF meanwhile is continuing its search for a new secretary-general.
Mr Sathit said the GPF's board will ask a recruitment agency retained to assist in the search to submit two new names for consideration within 30 days.
A previous list was rejected as the suggested candidates failed to meet GPF criteria. The process was complicated further when the chairman of the recruitment panel retired this past month,forcing the GPF to appoint a new panel.
Mr Sathit said the GPF would place ethics high on its list of criteria for the new secretary-general.
"The new secretary-general must not use the position to invest in the Stock Exchange of Thailand for personal gain.This is a new requirement that we have added for this appointment," he said.
The GPF board fired Visit Tantisunthorn as secretary-general in June for violating fund regulations. A Public Sector Anti-Corruption Commission investigation accused Mr Visit of personally investing in stocks also related to shares invested in by the GPF, a practice known in the industry as front-running.
Friday, September 18, 2009
INCREASED DISCLOSURE REGULATIONS?
After misreading risks of investing in sub-prime mortgage securities that triggered the current global financial crisis, Moody's Investors Service, Standard & Poor's and Fitch Ratings are about to face more disclosure requirements and greater accountability for debt analyses.
Bloomberg reported the US Securities and Exchange Commission would propose firms seeking to sell bonds disclose the grades they received while shopping among credit-rating companies, quoting people familiar with the matter.
Other changes scheduled for disuccion today at a Washington meeting may make it easier for investors to sue credit raters and require the companies to disclose revenue from their biggest clients, the people said.
Congress will decide whether the steps go far enough to reform an industry whose wrong assessments on subrime-mortgage securities fuelled the financial crisis by helping banks sell assets that went sour.
House Financial Services Committee chairman Barney Frank this week said he wanted to cut references to credit ratings from US rules, because the provisions fostered reliance on ratings and deter investors from doing research.
"What happens as a result of these rules is that investors have to buy securities that have particular ratings," said Frank Partnoy, a University of San Diego law professor and former Morgan Stanley banker who has written research papers about credit-rating companies.
"It creates this incredible dysfunctionality where the ratings agencies, instead of surviving based on their ability to generate good ratings, are basically selling licenses" to the capital markets.
The SEC will seek addiional comment on a proposal, issued in June 2008, to drop requirements that the US$3.5 trillion (Bt118 trillion) mutual-fund and money-market industry rely on assessments from ratings companies for purchase decisions, according to the people. The SEC plans include removing some references to ratings from its rules, the people said.
"The commission will consider measures to strengthen oversight of credit-rating agencies and improve the quality of ratings through greater transparency and accoutntability," SEC spokesman John Nester said on Tuesday.
Bloomberg reported the US Securities and Exchange Commission would propose firms seeking to sell bonds disclose the grades they received while shopping among credit-rating companies, quoting people familiar with the matter.
Other changes scheduled for disuccion today at a Washington meeting may make it easier for investors to sue credit raters and require the companies to disclose revenue from their biggest clients, the people said.
Congress will decide whether the steps go far enough to reform an industry whose wrong assessments on subrime-mortgage securities fuelled the financial crisis by helping banks sell assets that went sour.
House Financial Services Committee chairman Barney Frank this week said he wanted to cut references to credit ratings from US rules, because the provisions fostered reliance on ratings and deter investors from doing research.
"What happens as a result of these rules is that investors have to buy securities that have particular ratings," said Frank Partnoy, a University of San Diego law professor and former Morgan Stanley banker who has written research papers about credit-rating companies.
"It creates this incredible dysfunctionality where the ratings agencies, instead of surviving based on their ability to generate good ratings, are basically selling licenses" to the capital markets.
The SEC will seek addiional comment on a proposal, issued in June 2008, to drop requirements that the US$3.5 trillion (Bt118 trillion) mutual-fund and money-market industry rely on assessments from ratings companies for purchase decisions, according to the people. The SEC plans include removing some references to ratings from its rules, the people said.
"The commission will consider measures to strengthen oversight of credit-rating agencies and improve the quality of ratings through greater transparency and accoutntability," SEC spokesman John Nester said on Tuesday.
10-year yield 4%
The Finance Ministry has approved the sale of 7.74 billion baht worth of 10-year government bonds for a weighted average accepted yield of 3.977%. Accepted bid yields ranged from 3.9% to 4.05%,with the coupon rate 3.875% and bid coverage of 0.85 times.
Also sold were 8 billion baht in floating-rate bonds due in September 2013 for an average yield of 1.461%.Accepted bid yields ranged from 1.44% to 1.47%, with the coupon rate 6M Bibor (Bangkok Interbank Offered Rate)-0.15% and the bid coverage ratio 2.69 times.
Also sold were 8 billion baht in floating-rate bonds due in September 2013 for an average yield of 1.461%.Accepted bid yields ranged from 1.44% to 1.47%, with the coupon rate 6M Bibor (Bangkok Interbank Offered Rate)-0.15% and the bid coverage ratio 2.69 times.
Friday, September 11, 2009
BOT MULLS ANOTHER BOND ISSUE
The Bank of Thailand (BOT) might issue another batch of savings bonds this year after the overwhelming response to the recent issue, with total subscription at Bt130.7 billion. The move is a part of its plan to restructure its liquidฌity management by increasing longterm instruments to absorb excess liquidity. This could reduce shortterm tools like bilateral repurchase market.
BOT assistant governor Suchada Kirakul said yesterday that the central bank will issue a new tranche of savฌings bonds if the government does not issue its second lot of savings bonds within this year.
Moreover, it has to consider if demand and supply in the market was appropriate.
The Finance Ministry has planned to issue between Bt30 bilฌlion and Bt50 billion savings bonds in October after its first batch of Bt80 billion savings bonds sold out like hot cakes.
"If we issue a lot of the twoyear and fouryear bonds, we could reduce the shortterm instruments. The government is not issuing the bonds currently but we have to closely coordinate with them," said the assistant governor.
Liquidity surplus in the finanฌcial system now stands at Bt2.9 trillion, Bt1.7 trillion of which is available in the banking system. Of the total Bt2.9 trillion, a mere Bt500 billion is absorbed by bonds for periods of over a year.
The BOT said about 60,000 investors bought the BOT savings bonds totalling Bt130.69 billion, 60 per cent of which were sevenyear maturity bonds.
Suchada said after issuing the savings bonds, the central bank has reduced absorbing liquidฌity through other channels such as bilateral repurchase and deposit facility.
In addition to bonds, the central bank injects or absorbs the liquidity with many tools, including the bilateral repurchase operation, outright purchase and foreign exchange swap.
"We want to use different tools and don't want to rely largely on any particular instrument," she said.
Currently, the outstanding BOT bonds, including saving bonds, amount to Bt1.5 trillion.
Suchada said the central bank has reduced its liquidity absorpฌtion activities as the government has yet to spend after it had issued savings bonds worth Bt80 billion in early August.
Moreover, the excessive liquidity slightly dropped due to corpoฌrate tax payment.
The BOT makes liquidฌity projection to ensure it is on track. But the liquidity that the central bank provides daily to commercial banks would decline from around Bt800 billion to Bt900 billion to Bt660 billion.
Suchada said a number of banks have actively reacted to a series of savings bond issues by the government and the central bank by raising longterm fixed deposit rates or introducing special deposit packages to attract customers.
"The interestrate structure has not yet changed and the rates have long hit rock bottom," said the assistant governor.
Meanwhile, the BOT has obtained a contribution of 802 million special drawing rights (SDR), or US$1.25 billion (Bt42.6 trillion), from the International Monetary Fund (IMF) in August.
BOT assistant governor Suchada Kirakul said yesterday that the central bank will issue a new tranche of savฌings bonds if the government does not issue its second lot of savings bonds within this year.
Moreover, it has to consider if demand and supply in the market was appropriate.
The Finance Ministry has planned to issue between Bt30 bilฌlion and Bt50 billion savings bonds in October after its first batch of Bt80 billion savings bonds sold out like hot cakes.
"If we issue a lot of the twoyear and fouryear bonds, we could reduce the shortterm instruments. The government is not issuing the bonds currently but we have to closely coordinate with them," said the assistant governor.
Liquidity surplus in the finanฌcial system now stands at Bt2.9 trillion, Bt1.7 trillion of which is available in the banking system. Of the total Bt2.9 trillion, a mere Bt500 billion is absorbed by bonds for periods of over a year.
The BOT said about 60,000 investors bought the BOT savings bonds totalling Bt130.69 billion, 60 per cent of which were sevenyear maturity bonds.
Suchada said after issuing the savings bonds, the central bank has reduced absorbing liquidฌity through other channels such as bilateral repurchase and deposit facility.
In addition to bonds, the central bank injects or absorbs the liquidity with many tools, including the bilateral repurchase operation, outright purchase and foreign exchange swap.
"We want to use different tools and don't want to rely largely on any particular instrument," she said.
Currently, the outstanding BOT bonds, including saving bonds, amount to Bt1.5 trillion.
Suchada said the central bank has reduced its liquidity absorpฌtion activities as the government has yet to spend after it had issued savings bonds worth Bt80 billion in early August.
Moreover, the excessive liquidity slightly dropped due to corpoฌrate tax payment.
The BOT makes liquidฌity projection to ensure it is on track. But the liquidity that the central bank provides daily to commercial banks would decline from around Bt800 billion to Bt900 billion to Bt660 billion.
Suchada said a number of banks have actively reacted to a series of savings bond issues by the government and the central bank by raising longterm fixed deposit rates or introducing special deposit packages to attract customers.
"The interestrate structure has not yet changed and the rates have long hit rock bottom," said the assistant governor.
Meanwhile, the BOT has obtained a contribution of 802 million special drawing rights (SDR), or US$1.25 billion (Bt42.6 trillion), from the International Monetary Fund (IMF) in August.
Tuesday, September 8, 2009
CHINA TO FLOAT FIRST YUAN BONDS IN HK
Beijing will sell government bonds denominated in the mainland's yuan for the first time in Hong Kong this month, its Finance Ministry said yesterday, in a move to expand the international use of its tightly controlled currency.
Some 6 billion yuan (Bt30 billion) worth of bonds will be sold on September 28, the ministry said. Hong Kong is a Chinese territory but has its own currency and regulatory system and often is used by Chinese companies to deal with foreign investors.
DOLLAR CONCERNS
The yuan does not trade on global markets despite China's huge foreign trade, but Beijing is gradually expanding its use abroad. Chinese officials have expressed concern about the stability of the dominant US dollar and also have called for creation of a new global reserve currency.
Beijing signed a currency-swap deal with Argentina in March and has promised to lend yuan to the central banks of South Korea, Malaysia, Indonesia and Belarus in the event of a financial emergency. That could lead to the currency's use in private transaction.
A few mainland institutions, including state-owned China Construction Bank and Bank of China, have issued yuan-denominated bonds in Hong Kong.
Premier Wen Jiabao, the mainland's top economic official, has promised to strengthen trade and finance links with Hong Kong. Other officials have said it may become the centre for handling finance in yuan outside the mainland.
"This measure has a significant impact on promoting the depth and breadth of the Hong Kong bond market and strenghthening Hong Kong's position as an international financial centre," the territory's government said in a statement.
The Finance Ministry gave no details of who would handle the bond issue.
Two banks-London-based HSBC Holdings and Hong Kong-based Bank of East Asia-in May said they had become the first non-mainland companies approved to sell yuan bonds.
Some 6 billion yuan (Bt30 billion) worth of bonds will be sold on September 28, the ministry said. Hong Kong is a Chinese territory but has its own currency and regulatory system and often is used by Chinese companies to deal with foreign investors.
DOLLAR CONCERNS
The yuan does not trade on global markets despite China's huge foreign trade, but Beijing is gradually expanding its use abroad. Chinese officials have expressed concern about the stability of the dominant US dollar and also have called for creation of a new global reserve currency.
Beijing signed a currency-swap deal with Argentina in March and has promised to lend yuan to the central banks of South Korea, Malaysia, Indonesia and Belarus in the event of a financial emergency. That could lead to the currency's use in private transaction.
A few mainland institutions, including state-owned China Construction Bank and Bank of China, have issued yuan-denominated bonds in Hong Kong.
Premier Wen Jiabao, the mainland's top economic official, has promised to strengthen trade and finance links with Hong Kong. Other officials have said it may become the centre for handling finance in yuan outside the mainland.
"This measure has a significant impact on promoting the depth and breadth of the Hong Kong bond market and strenghthening Hong Kong's position as an international financial centre," the territory's government said in a statement.
The Finance Ministry gave no details of who would handle the bond issue.
Two banks-London-based HSBC Holdings and Hong Kong-based Bank of East Asia-in May said they had become the first non-mainland companies approved to sell yuan bonds.
BOT MULLS ANOTHER BOND ISSUE
The Bank of Thailand (BOT) might issue another batch of savings bonds this year after the overwhelming response to the recent issue, with total subscription at Bt130.7 billion. The move is a part of its plan to restructure its liquidฌity management by increasing longterm instruments to absorb excess liquidity. This could reduce shortterm tools like bilateral repurchase market.
BOT assistant governor Suchada Kirakul said yesterday that the central bank will issue a new tranche of savฌings bonds if the government does not issue its second lot of savings bonds within this year.
Moreover, it has to consider if demand and supply in the market was appropriate.
The Finance Ministry has planned to issue between Bt30 bilฌlion and Bt50 billion savings bonds in October after its first batch of Bt80 billion savings bonds sold out like hot cakes.
"If we issue a lot of the twoyear and fouryear bonds, we could reduce the shortterm instruments. The government is not issuing the bonds currently but we have to closely coordinate with them," said the assistant governor.
Liquidity surplus in the finanฌcial system now stands at Bt2.9 trillion, Bt1.7 trillion of which is available in the banking system. Of the total Bt2.9 trillion, a mere Bt500 billion is absorbed by bonds for periods of over a year.
The BOT said about 60,000 investors bought the BOT savings bonds totalling Bt130.69 billion, 60 per cent of which were sevenyear maturity bonds.
Suchada said after issuing the savings bonds, the central bank has reduced absorbing liquidฌity through other channels such as bilateral repurchase and deposit facility.
In addition to bonds, the central bank injects or absorbs the liquidity with many tools, including the bilateral repurchase operation, outright purchase and foreign exchange swap.
"We want to use different tools and don't want to rely largely on any particular instrument," she said.
Currently, the outstanding BOT bonds, including saving bonds, amount to Bt1.5 trillion.
Suchada said the central bank has reduced its liquidity absorpฌtion activities as the government has yet to spend after it had issued savings bonds worth Bt80 billion in early August.
Moreover, the excessive liquidity slightly dropped due to corpoฌrate tax payment.
The BOT makes liquidฌity projection to ensure it is on track. But the liquidity that the central bank provides daily to commercial banks would decline from around Bt800 billion to Bt900 billion to Bt660 billion.
Suchada said a number of banks have actively reacted to a series of savings bond issues by the government and the central bank by raising longterm fixed deposit rates or introducing special deposit packages to attract customers.
"The interestrate structure has not yet changed and the rates have long hit rock bottom," said the assistant governor.
Meanwhile, the BOT has obtained a contribution of 802 million special drawing rights (SDR), or US$1.25 billion (Bt42.6 trillion), from the International Monetary Fund (IMF) in August.
BOT assistant governor Suchada Kirakul said yesterday that the central bank will issue a new tranche of savฌings bonds if the government does not issue its second lot of savings bonds within this year.
Moreover, it has to consider if demand and supply in the market was appropriate.
The Finance Ministry has planned to issue between Bt30 bilฌlion and Bt50 billion savings bonds in October after its first batch of Bt80 billion savings bonds sold out like hot cakes.
"If we issue a lot of the twoyear and fouryear bonds, we could reduce the shortterm instruments. The government is not issuing the bonds currently but we have to closely coordinate with them," said the assistant governor.
Liquidity surplus in the finanฌcial system now stands at Bt2.9 trillion, Bt1.7 trillion of which is available in the banking system. Of the total Bt2.9 trillion, a mere Bt500 billion is absorbed by bonds for periods of over a year.
The BOT said about 60,000 investors bought the BOT savings bonds totalling Bt130.69 billion, 60 per cent of which were sevenyear maturity bonds.
Suchada said after issuing the savings bonds, the central bank has reduced absorbing liquidฌity through other channels such as bilateral repurchase and deposit facility.
In addition to bonds, the central bank injects or absorbs the liquidity with many tools, including the bilateral repurchase operation, outright purchase and foreign exchange swap.
"We want to use different tools and don't want to rely largely on any particular instrument," she said.
Currently, the outstanding BOT bonds, including saving bonds, amount to Bt1.5 trillion.
Suchada said the central bank has reduced its liquidity absorpฌtion activities as the government has yet to spend after it had issued savings bonds worth Bt80 billion in early August.
Moreover, the excessive liquidity slightly dropped due to corpoฌrate tax payment.
The BOT makes liquidฌity projection to ensure it is on track. But the liquidity that the central bank provides daily to commercial banks would decline from around Bt800 billion to Bt900 billion to Bt660 billion.
Suchada said a number of banks have actively reacted to a series of savings bond issues by the government and the central bank by raising longterm fixed deposit rates or introducing special deposit packages to attract customers.
"The interestrate structure has not yet changed and the rates have long hit rock bottom," said the assistant governor.
Meanwhile, the BOT has obtained a contribution of 802 million special drawing rights (SDR), or US$1.25 billion (Bt42.6 trillion), from the International Monetary Fund (IMF) in August.
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