50-bn-Baht govt bond to be offered July13-21

BAGNKOK, 25 June 2009 (NNT) – The Finance Ministry will start selling the first batch of 50 billion baht saving bonds from July 13 to 21 with the average annual interest rate at 4 percent. Senior citizen have the priority to buy the bond.

Director General of the Public Debt Management Office, Mr.Pongpanu Sawetroon, revealed that the 50 billion saving bonds will be offered to 3 different group of buyers in 3 different buying periods. The first 15 billion baht will be restricted only for senior citizens aged over 55 years old on July 13 to 14, the second 15 billion baht will be set for retirees aged over 60 and general public from July 15 to 17 and the rest, 20 billion will be offered for general investors and non profit organisations from July 17 to 21.

Each buyer of the first 2 groups will be allowed to invest at the minimum of 10,000 baht with the maximum of 1 million baht and only the last group will be allowed to buy the minimum of 10,000 baht with no limit, Mr. Pongpanu added.

Investors will receive annual interest of 3% for the first two years, 4% per cent in the third year, and 5% for years four and five, he said. The offered bonds are part of the government’s plan to borrow 4 billion baht to stimulate the economy which had passed parliament’s approval last week. Mr. Pongpanu adds that Finance Minister Korn Chatikavanij is to sign the distribution contract with seven financial institutions tomorrow.