BANGKOK (NNT) – The President of Thai Airways International Public Company Limited (THAI) has confirmed that there is no lack of liquidity and that the company has sufficient cash flow to operate its business as usual.

THAI president Sumeth Damrongchaitham confirmed that the company has continually managed and supervised debt reduction since 2013, although it still has to carry out the rehabilitation plan in the midst of intense competition in the aviation industry. The company has been able to reduce its debt by approximately 48 billion baht.

The company has also prepared a report on the status of its debt and reported on the movement of loan balances on a monthly basis, as well as its annual performance, to supervising agencies, such as the Ministry of Transport, the Ministry of Finance, and the Office of Public Debt Management, which have acknowledged its reports without any observations.

The plan for 32 billion baht in new borrowing in fiscal year 2020 is aimed at allowing the company to support its investment and refinance or for use it as a working capital and for normal operations and maintenance of equipment. The said budget does not include aircraft procurement, which is awaiting approval from relevant agencies.

The 32 billion baht is close to the amount of the debt plan of the previous year. As of the end of June this year, THAI’s revolving credit line accounted for 13.4 per cent of the total projected revenue for the year. This indicates that the carrier still has adequate cash reserves to operate as usual.

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TAK (NNT) – The second Thai-Myanmar Friendship Bridge to open on October 30 this year, is expected to stimulate border trade between the two countries. Access via the new bridge will help raise the value of border trade exports from the present 80 billion baht to 100 billion baht.

Deputy Prime Minister and Commerce Minister, Jurin Laksanawisit, traveled to Tak province to chair a meeting with the public and private sectors to discuss border trade promotion and discuss the opening of the second Thai-Myanmar Friendship Bridge.

The meeting also discussed a proposal to extend the operating hours of the Mae Sot checkpoint from 8 p.m. to midnight. The Commerce Minister said he will discuss the proposal with the Ministry of Foreign Affairs before it is submitted to a cabinet meeting for consideration. He said the issue should be resolved before the end of this month.

In the first eight months of this year, the value of Thai-Myanmar trade stood at 135 billion baht. Exports to Myanmar were estimated at 70 billion baht, while imports from Myanmar totalled 65 billion baht.

The Vice Chairman of the Thai Chamber of Commerce, Niyom Wairatpanij, said the second Thai-Myanmar Friendship Bridge will lift the value of border trade exports to 100 billion baht from the current 80 billion baht.

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BANGKOK (NNT) – Investors who plan to establish a business in a foreign country usually examine its credit rating first. Fitch Ratings, an international credit rating agency, has recently raised Thailand’s outlook to positive amid the global economic slowdown. The positive outlook is attributed to Thailand’s strong economic fundamentals and the government’s efforts to firmly establish its 20-year national strategy.

The Managing Director and Global Head of Sovereign Ratings for Fitch Ratings, James McCormack, said today that Thai economic growth this year stood at 3%, which was a little lower than the 3.2% projection, due to the global economic volatility, but Thailand is still one of 12 only countries around the world with a positive outlook. Most countries’ ratings have been downgraded, while the agency sees that the Thai economy and its fiscal status remain strong. The country’s debt-to-GDP ratio stands at 40 to 42%. Although the government plans to take out more loans to implement new infrastructure projects, it is not likely to exceed the debt ceiling, which is set at 60%. Furthermore, such investments will help improve the country’s competitiveness.

The Finance Minister, Uttama Savanayana, said today it is good news that Thailand’s rating has been upgraded to positive from stable because Fitch Ratings still has confidence in the country’s economic potential. If the government is able to work in line with its 20-year national strategy, investor confidence will increase. Many renowned multinational corporations have also shown interest in expanding their businesses in Thailand.

“It’s revised to positive. The adjustment was made in July. This is interesting because they said Thailand’s outlook has been adjusted up despite challenges from global events. That’s because Thailand in the long-term still has potential. If we can follow the socio-economic development strategy, Fitch Ratings believe that Thailand can still attract businesses on a global scale. They have noticed that many multinational corporations have shown interest to invest in Thailand because they see that a new government has been set up and a strategy.”

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