The Thai Public Debt Management Office (PDMO) insists on obtaining a rail loan from China with an interest rate capped at 2%. The 170 billion baht (4.3 billion euros) loan from China will finance the Bangkok-Nakhon Ratchasima high-speed train project.
The Chinese government must not charge over a 2% interest rate, regardless of whether the loan is in yuan or US dollars, PDMO director-general Suwit Rojanavanich said. The government will switch to domestic funding sources if China does not agree to the request. In the case of resorting to domestic loans, borrowing for the railway project can be done in phases, he added.
Thirteen bilateral talks between the Thai and Chinese authorities over the Sino-Thai railway have been held, but they have so far failed to agree over the interest rate. The Chinese government is offering a 3% interest rate.
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