Bond subscription deferred due to unrest

BANGKOK, May 16 (TNA) — Subscriptions to the Ministry of  Finance-sponsored Thai Khem Kaeng bonds valued at Bt100 billion, due to open Monday for people aged over 60, has been postponed for an indefinite period due to political unrest in the country, said Finance Minister Korn Chatikavanij on Sunday.

Mr Korn said sales of bonds in which the ministry would join with 12 banks and which were scheduled to open for subscription for persons aged 60 and over from Monday through Friday has been postponed due to concerns for the safety of the subscribers.

He said his ministry would definitely sell the bonds to the public once the situation has returned to normal  with “conditions and interest remaining intact”.

Funds raised from the offering will be used to finance infrastructure projects under the Thai Khem Khaeng ecomomic stimulus programme.

Minimum purchase of the bond is set at Bt10,000 while the maximum is at Bt1 million and people aged 60 and over will be allowed to subscribe first on those days. People aged less than 60 will be allowed to buy after Friday. Yields for the bond are set at 3 per cent during the first two years, four per cent in the third and fourth year, five per cent in the fifth year and six per cent in the sixth year to reflect market mechanisms.

Mr Korn said the government’s economic policy programmes remain unchanged despite the ongoing civil disorder. For instance,  the government plans to submit its Fiscal 2011 expense budget for the period beginning October 1 to the House of Representatives on May 24. (TNA)