The detail of the draft announcement is as follows:

1.      Ministry of Finance can guarantee loan for government agencies, state owned enterprises and government financial institutions under 8 situations as follows

a.       Loan for project or plan relating to infrastructure or public assistance which will benefit the public. Project or plan with high EIRR (Economic Internal Rate of Return) but low FIRR (Financial Internal Rate of Return) or project/ plan that price of product/ service is under control as the result of government’s policies

b.      Loan from international financial institutions, foreign governments and financial institutions under foreign governments that the Ministry of Finance agrees to the condition of the loan and loan guarantee

c.       Loan during unfavorable time and the lack of loan guarantee by the Ministry of Finance can negatively affect the country

d.      Loan that the cabinet agrees that the total or partial amount will be the government’s responsibility

e.       Loan to restructure debt guaranteed by the Ministry of Finance and the Ministry agreed to continue guaranteeing the debt

f.       Loan to be used as working fund for government agencies, state owned enterprise or government financial institutions whose product/ service prices are under control as the result of government’s policies

g.      Loan for project, plan or debt restructuring that the loan guarantee by the Ministry of Finance will help reduce the cost or improve the efficiency of public debt management (draft no.2)

2.      After the cabinet approves the loan guarantee, the Ministry of Finance must follow the public debt management act and other laws (draft no.3)

3.      Loan guarantee fee or other charges must follow the ministerial regulations on the charge rate and condition for loan guarantee by the Ministry of Finance (draft no.4)