Cabinet Greenlights “SRT’s” 18-Billion-Baht Loan to Boost FY2027 Liquidity, Finance Ministry to Guarantee Following Continuous Losses

Today (3 November 2026) at 11:45 AM at Monthathip Hall International Convention Center, Mueang Udon Thani District, Udon Thani Province, Ms. Ploythalay Laksameesangchan, Deputy Government Spokesperson, announced the outcomes of the Mobile Cabinet Meeting in Udon Thani Province. The Cabinet approved the State Railway of Thailand’s (SRT) borrowing under Section 39 (4) of the State Railway of Thailand Act, B.E. 2494 (1951), with the Ministry of Finance acting as guarantor and considering appropriate borrowing methods, conditions, and details. The SRT will execute the loan after the borrowing amount is included in the Public Debt Management Plan for Fiscal Year 2027 following statutory approval procedures. Regarding loan fee exemption requests, the SRT will proceed in accordance with relevant laws, regulations, and conditions. This loan, amounting to 18,000 million baht, is for operational use (in cases where revenue is insufficient for expenditure) in Fiscal Year 2027, as approved by Deputy Prime Minister Pipat Ratchakitprakarn for submission by the Ministry of Transport.

Ms. Ploythalay stated that the State Railway of Thailand (SRT) has experienced continuous losses because it must allocate revenue to pay interest and loan expenses, as well as operational expenses such as rail infrastructure maintenance, building and facility maintenance, locomotives and rolling stock, train operations, and pension expenses. In Fiscal Year 2026, the SRT had cash outflows exceeding cash inflows by a total of 18,000 million baht, resulting in revenue being insufficient for operational expenditures. The SRT therefore needed to seek Cabinet approval for this loan to alleviate liquidity shortages in Fiscal Year 2027 and maintain working capital for operations. The SRT will bear the principal, interest, and borrowing costs, while the Ministry of Finance will serve as guarantor and assist in sourcing loan funds, determining loan methods, conditions, and appropriate details. Furthermore, the SRT’s loan has already been incorporated into the Public Debt Management Plan for Fiscal Year 2027.

The Ministry of Transport reported that the Public Debt Management Office (PDMO), Ministry of Finance, with the approval of the Minister of Finance, the Bureau of the Budget, and the Office of the National Economic and Social Development Council (NESDC), has reviewed and approved/raised no objections to the matter, while offering additional observations on various issues.