Thailand readies $4 billion loan guarantee for oil fund

Thailand readies $4 billion loan guarantee for oil fund
FILE PHOTO: A view of Bangkok’s port along Chao Phraya River is photographed during sunset in Bangkok, Thailand, July 19, 2022. REUTERS/Athit Perawongmetha

BANGKOK : Thailand’s cabinet on Tuesday approved a law to guarantee up to 150 billion baht ($4.23 billion) in loans for the state oil fund to support energy prices as the government fights inflation, according to a government source and local media reports.

The measure still has to be examined by the Council of State, a government office that vets laws, the source said, before final sign off from parliament.

The Oil Fuel Fund Office was about 117 billion baht ($3.30 billion) in the red as of Aug. 14, as Thailand used it to support subsidies and manage oil prices in a bid to slow inflation hovering around 14-year highs in July.

($1 = 35.45 baht)

 

Source: Reuters