BANGKOK, March 22 (NNN-BERNAMA) —\u00a0Thailand today introduced measures including a liquidity support fund of 70 to 100 billion baht to stabilise the financial market and stop liquidity amid the COVID-19 outbreak that has led to\u00a0turbulence in financial markets and sales of assets.\u00a0<\/p>\n\n\n\n
The Thai Bankers\u2019 Association, the Government Savings Bank, Thai insurance providers and the Government Pension Fund have set up a 70 to 100 billion baht Corporate Bond Stabilisation Fund.<\/p>\n\n\n\n
A joint statement by the Bank of Thailand (BoT), the Finance Ministry and the Securities and Exchange Commission said the fund will invest in high-quality, newly issued bonds by corporates that cannot fully roll over maturing corporate bonds.<\/p>\n\n\n\n
\u201cBoT will continue to provide liquidity to the government bond market through bond purchasing to ensure that the government bond market continues to function normally.<\/p>\n\n\n\n
\u201c\u2018These measures are expected to provide liquidity and help the normal functioning of the financial market and help build investors\u2019 confidence.<\/p>\n\n\n\n
\u201cRelevant public and private institutions will continue to work together, monitor the situation and provide additional measures to ensure the normal and efficient functioning of the financial market,\u201d it said.<\/p>\n\n\n\n
The statement said the BoT has set up a special facility to provide liquidity for mutual funds through commercial banks.<\/p>\n\n\n\n
It said commercial banks who purchase investment units of high-quality money market funds or daily fixed income funds that have been impacted by the decreased market liquidity will be able to use the underlying unit trust as collateral for liquidity support from this special facility.<\/p>\n\n\n\n
\u201cThe facility will remain open until the market condition returns to normal. BoT\u2019s preliminary estimate of eligible bond mutual funds is approximately one trillion baht,\u201d it said.<\/p>\n\n\n\n
The statement said as the current stress period is the result of the temporary liquidity shortage while bond mutual funds still hold low-risk, good quality assets, the public are urged not to rush to redeem during this period of market abnormality.<\/p>\n\n\n\n
\u201cDoing so might result in prices that are significantly below fair value,\u201d it said.<\/p>\n\n\n\n
On Friday, Thailand slashed the policy rate by 25 basis points to a fresh record low of 0.75 per cent.<\/p>\n\n\n\n
Today, Thailand reported a record-high 188 new COVID-19 cases to take its total to 599, with one fatality.<\/p>\n\n\n\n
–NNN-BERNAMA<\/p>\n","protected":false},"excerpt":{"rendered":"
BANGKOK, March 22 (NNN-BERNAMA) —\u00a0Thailand today introduced measures including a liquidity support fund of 70 to 100 billion baht to stabilise the financial market and stop liquidity amid the COVID-19 outbreak that has led to\u00a0turbulence in financial markets and sales of assets.\u00a0 The Thai Bankers\u2019 Association, the Government Savings Bank, Thai insurance providers and the […]<\/p>\n","protected":false},"author":19,"featured_media":25813,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[288,300,318],"tags":[],"_links":{"self":[{"href":"http:\/\/namnewsnetwork.org\/index.php?rest_route=\/wp\/v2\/posts\/66740"}],"collection":[{"href":"http:\/\/namnewsnetwork.org\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/namnewsnetwork.org\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/namnewsnetwork.org\/index.php?rest_route=\/wp\/v2\/users\/19"}],"replies":[{"embeddable":true,"href":"http:\/\/namnewsnetwork.org\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=66740"}],"version-history":[{"count":0,"href":"http:\/\/namnewsnetwork.org\/index.php?rest_route=\/wp\/v2\/posts\/66740\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/namnewsnetwork.org\/index.php?rest_route=\/wp\/v2\/media\/25813"}],"wp:attachment":[{"href":"http:\/\/namnewsnetwork.org\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=66740"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/namnewsnetwork.org\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=66740"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/namnewsnetwork.org\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=66740"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}