Illustrative image (Photo: VNA) Bangkok (VNA) - Thailand has introduced measures that include a liquidity support fund worth 70-100 billion THB (2.2-3.2 billion USD) to reduce riska in the debt market amid the spread of the COVID-19 outbreak.
Earlier, the Bank of Thailand (BoT) offered special credit facilities to shore up liquidity in money market funds or daily fixed income funds through commercial banks.
A consortium led by the Thai Bankers' Association has set up a 70-100 billion THB Corporate Bond Stabilisation Fund (CBSF) for investment in high-quality and newly-issued bonds by the corporates which cannot fully roll over maturing corporate bonds.
Central bank governor Veerathai Santiprabhob told a press conference on March 22 that commercial banks could use investment grade bonds as collateral for borrowing money from the central bank’s lending facility.
These measures are expected to provide liquidity and help the normal functioning of the financial market and help build investors' confidence, he said./.
VNA
