Public debt office allays concerns
Higher interest rates not a potential risk
With most of the government’s debt portfolio dominated by long-term bonds with fixed interest rates, there is less risk from the trend of rising interest rates globally, according to the Public Debt Management Office (PDMO).
PDMO director-general Patricia Mongkhonvanit admitted rising interest rates globally could eventually impact the government’s financial resources.
However, as 82% of PDMO’s debt portfolio is made up of long-term bonds with fixed interest rates, this reduces the risk for public debt management, said Mrs Patricia.
Over the last two years the office conducted massive borrowing, including a total of 1.5 trillion baht under two emergency loan decrees to mitigate the impact of the Covid-19 pandemic. Part of this borrowing…
