Page 79 - Annual Report 2552

Meeting challenges through

strategic planning

The economic conditions and financial market has been
highly volatile during the past year, the government has been

swift in responding to the changing market environment by
implementing a series of fiscal policy measures. Fiscal measures

aimed at stimulating economy included sizeable budget deficit
and additional borrowing in an amount of 400,000 million Baht

to fund the Thai Khem Khaeng investment programs. Inevitably,
the level of public debt risen sharply as a direct result of

increasing borrowing requirements to support fiscal measures.
PDMO, therefore, faces a challenging task in terms of meeting

increased principle and interest payments as well as meeting
government funding needs with at an acceptable cost and

risk level. PDMO has identified 4 key strategies that we must
implement in order to achieve our goals:

1. Pro-Active Debt Management

The increasing level of borrowing requirements has made PDMO debt management
operations more complicated and challenging. Looking forward, sound debt management can only

be achieved through pro-active debt management. PDMO, therefore, plans to strategically alter public
portfolio to limit risks from foreign exchange, interest and refinancing risks. Some of these measures include

1) lengthening of the maturity through issuance of bonds with long maturities (15, 20, 30 years) to
restructure bunching of debt; 2) actively manage cost and risk through Cross Currency Swap (CCS) to

reduce FX risk and engage in Interest Rate Swaps (IRS) to reduce cost; and 3) formulate feasible
financing plans to finance basic infrastructure projects , creative economy, health and education facilities.

2. Domestic Bond Market Development
PDMO has been committed to developing the domestic bond market and it has become

one of PDMO’s primary strategy. PDMO plans to take a leading role in implementing measures to support
growth of the domestic bond market to be sufficiently large and liquid enough to become primary source of

funding for both the public and private sector. PDMO plans to attract both local and international investors by
implementing issuance plans aimed at enhancing liquidity in the secondary market as well as introduce

78 รายงานประจำาปี 2552 ANNUAL REPORT 2009