Are Thai govt savings bonds attractive?

25 Sept 00:37 Key points summarised by AI

The Thai government launched Bt8 billion in new savings bonds, part of a Bt55 billion 'Rao Chana' scheme, to fund COVID-19 recovery efforts, making them accessible to retail investors.
These bonds offer competitive average coupon rates: 2% for five-year bonds and 2.5% for ten-year bonds, which are notably higher than rates for institutional investors and typical bank deposits.
Considered nearly risk-free due to Thailand's consistent debt repayment history, the bonds offer a secure investment, with minimal inflation risk anticipated in the near term.
Beyond stable long-term returns, these bonds serve as an effective tool for diversifying investment portfolios and can also be used as collateral for loans or bail.
While subject to a 15% withholding tax on returns, the effective coupon rate remains attractive, and investors can adjust their tax burden based on their annual income.

New home loan scheme aims to boost property sector with Bt125 billion

20 Oct 11:38 Key points summarised by AI

The Cabinet approved a new Bt50-billion 'A House for Each PLUS' home loan scheme from the Government Housing Bank, offering up to Bt3 million with 40-year repayment terms for low- and middle-income earners.
This initiative aims to significantly boost the property sector and national economy, projecting to generate Bt125 billion in economic activity and create jobs.