Anucha Burachaisri, spokesman for the Prime Minister’s Office, revealed that the Cabinet meeting (Cabinet) acknowledged the amendment of documents supporting the loan agreement between the Ministry of Finance and international financial institutions to support the termination of the London Interbank Offered Rate (LIBOR) as an interest rate. refer
The World Bank and the Asian Development Bank have written to the Ministry of Finance requesting to amend the documents supporting the loan agreement. Support for the cessation of LIBOR after the Financial Conduct Authority (FCA) has officially announced that it does not endorse LIBOR as the official benchmark interest rate. Starting after 2021, the Minister of Finance has approved the amendment of the documents supporting the loan agreement. and signed a letter of agreement to amend the details of the loan agreement of the World Bank and the Asian Development Bank.
A spokesman for the Prime Minister’s Office said that the Ministry of Finance also has five loan agreements from the World Bank and the Asian Development Bank that set floating interest rates based on USD LIBOR on outstanding or pending loans: The construction of the main road into 4 lanes (Phase 2), the loan project for economic rehabilitation and infrastructure development, the loan project for economic recovery and infrastructure development, the project of the construction of the main road into 4 lanes (phase 2) and loan project under Royal Decree empowers the Ministry of Finance to borrow money to solve problems heal and restore the economy and society Affected by the 2019 Coronavirus outbreak, total amount 2,976.50 million US dollars
The LIBOR interest rate is the reference interest rate widely used in the global financial markets and is the interest rate used by the World Bank and Asian Development Bank in determining the benchmark interest rate for lending to foreign counterparties. The UK Monetary Policy Organization and interest rate publisher, LIBOR, has detected distortions in the reporting of market participants to prepare benchmark interest rates. As a result, the credibility of LIBOR has decreased and on March 5, the FCA officially announced. Discontinued and will not endorse LIBOR as the official benchmark interest rate beginning after 2021.
–InfoQuest by Thanit Thongnok/Thanawat/Ratchada Tel.02-2535000 ext.317 Email: [email protected]–