Thailand: Cabinet approves the renewal of EGAT short-term loans

The Cabinet approved. Renew short-term credit line loan with an annual amount of 10,000 baht to the Electricity Generating Authority of Thailand.

On March 16 at the Government House, Mr. Anucha Buropchaisri, a spokesman for the Prime Minister's Office, stated that the Cabinet approved the renewal of the Credit Line short-term loan of 10,000 million baht per year to the Electricity Generating Authority of Thailand ( EGAT) for a period of 3 years from 11 September 2021

Under the original condition is an overdraft loan Promissory notes, Trust Receipt (T / R) and making a loan agreement on demand (Call Loan) by considering the lowest cost of a loan agreement with a financial institution.

The Ministry of Finance (GHK) does not guarantee the principal and interest from such loans in order for EGAT to effectively manage liquidity.

The Ministry of Energy reported. EGAT's credit line short-term loan that the Cabinet has previously approved. Will expire on September 11, 2021, but EGAT still needs to use the loan. To support efficient liquidity management

Due to the need for a very large amount of working capital to operate. With regular expenses to be paid, including fuel Electricity purchase cost Capital expenditures and others, including expenses that may arise from the implementation of government policies, such as extension of periods for electricity payments to some large power buyers This affects the cash flow projections.

Including income from electricity or electricity sales that may deviate from projected cash flows. Has a resolution to approve the renewal of EGAT's short-term loan. Too