Thai cabinet approves $37.5 billion borrowing for 2027 fiscal year

BANGKOK, Sept 29 (Reuters) - ‌Thailand's cabinet has ​approved ​1.26 trillion baht ($37.5 billion) in new borrowing for the 2027 fiscal year starting in October, ‌the finance ministry said on Tuesday.

The ministry also ⁠said in a statement that the country's public debt ratio was ‌projected to reach 69.7% ‌of GDP by the end of the fiscal year ending September 2027, close to the official ceiling ​of 70%.

• The new borrowing plan includes 200 billion baht for energy transition projects under a broader ⁠borrowing decree, the ministry said.

• The government plans to issue up to 1.28 ​trillion baht of government bonds during the fiscal year, Jindarat Viriyataveekul, head of the Public ​Debt Management Office, told reporters. ‌The figure was previously reported by Reuters.

• It plans to increase short-term borrowing and use ⁠instruments such as treasury bills and term loans while long-term bond yields remain elevated, Jindarat said.

• It will refinance shorter-term ⁠borrowing into longer-term debt once long-term bond yields decline, she said, ​adding that higher yields would not affect government borrowing costs.

• The government's average borrowing cost is currently around 2.6% and is expected to ‌stay unchanged in the coming fiscal year, she said.

• Finance Minister Ekniti Nitithanprapas told ‌Reuters last week that he expected the economy to ⁠grow 2.5% in 2027, ‌driven by investment-led ​policies.

($1 = 33.57 baht)

(Reporting by Kitiphong Thaichareon and Orathai Sriring; Writing by Martin Petty; Editing by John ‌Mair)

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