Manila, Philippines (BBN) – The Asian Development Bank (ADB) is extending a US$300 million loan to Thailand for capital market development designed to boost investment and support long-term, sustainable growth.
ADB’s Board of Directors on Tuesday approved the loan, along with a technical assistance grant, for the Capital Market Development Program. The loan funds are being released following the completion of an agreed series of measures undertaken by the government of Thailand between 2007 and 2010.
The program is anchored to the government’s Capital Market Development Master Plan for 2009-2013, which sets out a roadmap for finance sector development and reforms over the medium term, an ADB announcement said.
The master plan focuses on key dimensions of capital markets including developing the equity market, bond market and money market.
The goal is to help the country transform from a middle-income to high-income economy through increased contribution of the domestic capital market to financing domestic investment and economic growth.
The loan has a 15-year term, with a grace period of 3 years, and annual interest set in accordance with ADB’s LIBOR-based lending facility. The Public Debt Management Office is the executing agency for the program.
BBN/SI/AD-21Sept10-8:36 pm (BST)
