Prospective Thai issuers will go forward with their securitization plans, despite the Central Bank's recent move to raise interest rates. In an effort to combat inflation caused by rising oil prices, Bank of Thailand increased its key short-term benchmark rate by 25 basis points.
This led to fears that price sensitive ABS originators would delay issuing deals for the foreseeable future. However, the Government of Thailand immediately responded to the speculation by announcing it is still on course to issue its first deal from a THB24 billion ($574.7 million) program later this year (see ASR 5/2/05). The facility will finance the construction of a government office complex.