Thursday, December 14, 2017

Thailand to cut deposit insurance coverage in August

The government is poised to cut deposit insurance to THB25m (USD768,000) per account from THB50m (USD1.5m) starting in August and then make an additional reduction to THB1m (USD30,000) from August 2016.

The planned reduction of deposit insurance coverage has already prompted investors to move their savings out of deposits and into bonds.

Businesses in Thailand are rushing to the debt market after raising a record THB1.74tr (USD54bn) in 2014.

Investors are also moving to the bond market after being turned off by bank deposits that pay interest of just 1 to 2%.

In the first quarter of this year, the number of corporate debt issuers in Thailand reached 158, or 70% of the total for all of 2014.

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