The cabinet has given the green light to an emergency decree allowing the Oil Fuel Fund Office to borrow up to 150 billion baht, with the Finance Ministry guaranteeing loan repayments, a source revealed yesterday.
The proposed law, examined by the Council of State, is aimed at boosting the fund’s liquidity. The fund has posted hefty losses from subsidising domestic oil prices, and the Energy Ministry has estimated that it could rack up total losses of 200 billion baht by the end of this year without an increase in its liquidity.
According to the source, the measure also involves extending the legal borrowing limit from 40 billion baht to 170 billion baht and seeing it receive an additional 150 billion baht, in accordance with an executive decree that enables the Finance Ministry to guarantee loans during the ongoing energy crisis.