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Government foreign debts to be refinanced

The Ministry of Finance and Thailand's state enterprises plan to refinance or repay external debt of US$3.183 billion by the end of 2007, as part of the government's plan to weaken the baht.

Deputy Finance Minister Sommai Phasee said that the refinancing will save the borrowing costs by Bt20-Bt30 billion.

The move is part of the government's attempt to ease appreciation pressure on the baht, Sommai said.

Until the next 4 months, at least 80 per cent of the borrowings would be refinanced while the rest will be done before end-2007.

"This is a measure to stem the baht rise. Personally, I think dollar should weaken further. Thus, more measures could be required," he said.

- The Nation

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