Page 5 - Annual Report 2552

FOREWORD BY

DIRECTOR-GENERAL

PUBLIC DEBT MANAGEMENT

The financial crisis, with US as its epicenter, spread rapidly across the globe in 2009.
In contrast to the Asian economic crisis in 1997, the financial sector of Thailand remains unaffected

thanks to strong financial markets fundamentals. However, the crisis transmitted into the Thai economy
through the real sector as evident by sharp declines in exports, consumer consumption and private sector

investment. The Government was swift in responding to the global financial crisis by implementing a
series of fiscal stimulus measures and thereby alleviating the impact on the Thai economy. The Public

Debt Management Office (PDMO) played an integral part in supporting and ensuring that the government
met its financial obligation from the fiscal stimulus through the implementation of sound borrowing and

Pro-Active debt management strategies. Furthermore, PDMO remained committed to achieving sustainable
development in the domestic bond market to become a reliable funding source for both public

and private sector.
In 2009, with PDMO support, government and State Owned Enterprises (SOEs) were

able to meet their financial obligations. In addition to formulating and executing borrowing strategies,
PDMO’s Pro-active debt management scheme which included debt restructuring through lengthening

of maturities, prepayment and risk management operations, led to the reduction of outstanding debt by
55,288.22 million baht as well as interest savings of 1,206.69 million baht.

PDMO maintained its commitment to develop the domestic bond market. This year, to establish
the benchmark yield curve and to further enhance liquidity in the secondary market, PDMO has gradually

increased the amount of the Benchmark bonds in all maturities. PDMO has successfully diversified its
products range through the introduction of new and modification of current products. In particular, PDMO

issued “Thai Khem Khaeng” 5 year Saving Bonds in an amount of 80,000 billion baht with “Step-up” interest
structures for the first time in Thailand, which was very well received by investors. Progressed was made

with regards to establishing the Public Debt Restructuring and Domestic Bond Market Development
Fund. The Fund will play a significant role in reducing public debt restructuring related risks as well as

provide support to the development of the domestic bond market. As a result of PDMO domestic bond
market development measures in 2009, the size of bond market has increased to 69 percent of GDP,

increasing by 19.8 percent from the previous year.

4 รายงานประจำาปี 2552 ANNUAL REPORT 2009