S&P Warns Thailand's Off-Budget Debt May Rise, Especially the Oil Fund
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The credit rating agency S&P Global Ratings has issued a view on Thailand's public finances, focusing on off-budget debt, which refers to debt that the government does not directly record in the annual budget.
S&P states that off-budget debt related to the Oil Fund, or the Oil Fuel Fund, faces a risk of increasing. The fund is used to help cap oil prices so that the public can buy fuel at prices that are not excessively high. When global oil prices rise, the fund may need to borrow more to cover this price gap, which could increase the country's overall debt burden.
In addition, S&P notes that Thailand's political stability and continuity in policy implementation are key factors that help support confidence in the country's economy and public finances. Those following this issue should therefore watch both the government's debt management and the transparency of off-budget debt together.
In conclusion, monitoring off-budget debt, particularly the debt of the Oil Fund, will remain an issue to watch closely, as it is related to the country's fiscal burden and investor confidence over the long term.
Sources: thestandard.co
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