State-owned Government Savings Bank (GSB) is willing to offer an interest rate at the lowest level possible to the Oil Fuel Fund if the fund needs to shore up its liquidity, says GSB president Vitai Ratanakorn.
The state Oil Fund has posted hefty losses from subsidising the domestic oil price. It sought loans from local financial institutions to boost its liquidity, but none were prepared to offer a loan to the fund because of concerns over its ability to repay the debt.
The cabinet approved a draft executive decree on Aug 16 to allow the Finance Ministry to guarantee loan repayment and borrowing by the Oil Fuel Fund Office worth up to 150 billion baht. The decree aims to increase the liquidity of the fund and help it cope with rising domestic energy prices.
