State firms told to avoid borrowing when investing

The Finance Ministry may require state-owned enterprises planning new investments to rely primarily on their own revenues to reduce the burden on public debt.

- WICHIT CHANTANUSORNSIRI

According to Jindarat Viriyataveekul, director-general of the Public Debt Management Office (PDMO), caretaker finance minister Ekniti Nitithanprapas set a policy for state-owned enterprises planning to invest, requiring them to first use their own income before relying on borrowing.

Alternatively, these enterprises may invest through public-private partnership schemes or infrastructure funds.

Under the PDMO’s definition, borrowing by state-owned enterprises is classified as public debt.