EC-1 This report is not to be published nor may it be quoted as representing the Bank's views. INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT SUMMARY OF THE EXTERNAL DEBT OF THAILAND October 15, 1952 Economic Staff Prepared by: Andrew C. Huang Reviewed by: Carel deBeaufort Table of Contents Page I. Outstanding External Public Debt 1 A. U.S. dollar debt B. Sterling Debt II. Service Record 1 III. Service Payments 1 Table A-1: External Public Debt of Thailand Table A-2: Estimated Contractual Interest and Amortization Payments on the External Public Debt of Thailand (This report was prepared by Andrew C. Huang, checked by James J. Lynch and reviewed by Carel deBeaufort.) SUlIARY OF TIE EXTMRNAL DEBT OF THAILAlD I. Outstanding External Public Debt As of December 31, 1951 the extern-1 debt of the Government of Thailand stood at the equivalent of about US$34.4 million, of which about $21.7 million remained undisbursed. The debt was composed of the followings External Debt of Thailand 1L Amounts outstanding in millions In currency In dollar of payment equivalents A. U.S. dollar debt 1. IBED loans $25.0 25.0 9/ ii. U.S. Government loan 5-0 5-0 Sub-total $30.0 30.0 B. Sterlina debt i. Bonds i 1.4 3.9 ii. IBRD loan X.002 O.5 Sub-total i 1.6 4.4 Grand total. . . . . . . . . . . . 34.4 2/ II. Service Record There is no record of default on any of the external public obligations of Thailand except during the Japanese occupation in 1942-1946. Service was re- newed in 1947 with full payment of all arrears. 111. Service Payments . Service payments on the external debt of Thailand in selected years from 1952 to 1971 are shown below. Full details are given in Table A-2. Estimated Contractual Interest and Amortization Payments on the External Public Debt of Thailand (expressed in thousands of U.S. dollars) Total Debt Service payments Debt out- Payments during year by currency standing Amorti- U.S. Year January 1 zation Interest Total dollars Sterling 1952 34,409 569 1,287 1,856 1,445 L1 1953 33,840 578 1,268 1,846 1,435 411 1954 33,262 1,063 1,246 2,309 1,898 411 1955 32,199 1,091 1,209 2,300 1,889 411 1956 31,108 1,977 1,162 3,139 2,708 431 1964 13,318 2,576 488 3,064 2,640 424 1965 10,742 2,272 398 2,670 2,632 38 1967 6,495 1,390 246 1,636 1,598 38 1970 2,260 1,492 76 1,568 1,530 38 1971 768 768 15 783 765 18 1 For details see Table A21. 2f Of this amoun $21.7 millionwere undisbursed. -2- The maximum of service charges, amounting tn US$3.1 million, will be reached in 1956 when amortization begins on the IBRD Irrigation Loan, Service charges will stay close to this level until 1964 when repayment of all outstanding sterling bonds will cause a reduction in the annual payments of $400,000. Final repayment of the IBRD Railways and Port Lnans will cause a further drop in service charges to $1.6 million in 1967. They will remain nn this level until all debt is paid off in 1971. Table A-l. UHKILAND - M2ERNA-L PUBLIC0 boi (In thousands) Page 1 Debt outstanding December 31,.1951 IdentificationDeebr3,15 In currency Expressed in of payment U.S. dollars NATIONAL AND GOVERNT GUARANTEED DEBT U.S. DOLLAR DEBT Loans from international organizations I.B.R.D. Railways project loan 3 3/4%, 1950-1966 $ 3,000 ' 3,000 1. I.B.R.D. Port project loan 3 3/4%, 1950-1966 $ 4,400 4,400 g/ Portion of $18,000,000 I.B.R.D. Irrigation project loan 4, 1950-1971 $17,561 / 17,561 .2/ Total loans from international organizations $24,961 24,961 U.S. Government loans Export-Import Bank 3 1/2%, 1951-1968 $ 1,040 1,o4 Surplus Property 2 3/8%, 1946-1966 ./ $ 4,043 4,043 Total loans from U.S. Government $ 5,083 5,083 Total U.S. dollar debt $30,044 30,044 STERLING DEBT Sterling securities Conversion loan 40, 1936-1964 Z 1,402 3,926 Loans from international organizations Portion of $18,000,000 I.B.:R.D. Irrigation project loan 4, 1950-1971 Z 157 419 Total sterling debt Z 1,559 4365 Total,public debt 34,409 Debt Summary by Currency (Amounts expressed in thousands of U.S. dollars) Debt out- standing Percent U.S. dollars Disbursed and outstanding $ 8,382 24.36 Undisbursed 21,662 62.95 Total 30044 87.31 Sterling Disbursed and outstanding 4,365 12.69 All currencies $314402 100.00 Exchange rate: £1 = $2.80. The dollar equivalents of the non-dollar portions of the I.B.R.D. loans are fixed by agreement with the Bank. The actual amounts payable are shown in the "currency of payment" column. Table A-1: RILAD - MERM--PU0 WT. (Continued) Page 2 / Of this amount $2,988,600wrerundisbursed and $11,400 had been disbursed as of December 31, 1951. ] Of this amount $4,003,887rere undisbursed and $396,113 had been disbursed as of December 31, 1951. / This loan was not completely disbursed an December 31, 1951. The status of the loan at that time is shown here: Disbursed and Currency still outstanding Undisbursed (Expressed in thousands pf U.S. dollars) U.S. dollars $2,891,422 $14,669,235 Pounds sterling 439,343 - Total 3,130,761 14,669,235 / The agreement provides that the United States may elect to accept either real property or local currency instead of U.S. dollars in repayment of this obligation. The real property clause provides for the acquisition by the United States, upon request, of real property and improvements to real pro- perty. The local currency clause provides for the receipt by the United States, upon request, of local currency to be used for cultural and educa- tional programs as authorized by the State Department under the Fulbright Act or for the payment of any or all expenditures of the U.S. Government* This has been interpreted to include cultural and educational programs when mutually agreed upon by both countries. The agreement also indicates that "except by mutual agreement between the United States and Thailand, the United States shall not be entitled to receive in any single calendar year...any Thailand currency or property the combined total value of which is in excess of dollars one million ($1,000,000). In the event that Thailand currency is received by the United States or its designees under the terms of this sub-paragraph, the United States dollar equivalent of the amount received shall be credited first to past due interest,,if any, and then pro rata to all remaining unpaid in- stallments of principal,' IBED - STATISTICS SECTION October 24, 1952 -Table A-23 THAILAND -78TIMATKD CONTRACTUAl- IMIRMST AND AMOATIZATI0N PAYMENTS ON TBE EXTEIMAL PBLIO hEtT (Expressed in thousands of U.S. dollars) Page 1 I.B.R.D. loans - U.S, Government debt Total U.S. dollar debt U. S. dolU r portion Year Debt out- Payments during year Debt out- Payments dring year Debt out- Payments during year standing Amorti- Interest Total standing Amorti- Interest Total standing Amorti- Interest Total January 1 zation January 1 zation January 1 zation 1952 24,961 - 980 980 5,083 333 132 465 30,044 333 1,112 1,445 1953 24,961 - 980 980 4,750 332 123 455 29,711 332 1,103 1,435 1954 24,961 474 976 1,450 4,418 333 115 448 29,379 807 1,091 1,898 1955 24,487 493 958 1,451 4,085 332 106 438 - 28,572 825 1,064 1,889 1956 23,994 1,347 931 2,278 3,753 333 97 430 27,747 1,680 1,028 2?708 1957 22,647 1,400 878 2,278 3,420 332 89 421 26,067 1,732 967 2,699 1958 211247 1,455 822 2,277 3,088 333 80 413 24335 1,788 902 2,690 1959 19,792 1,514 765 2,279 2,755 332 72 404 22,547 1,846 837 2,683 1960 18,278 1574 705 2,279 2,423 333 63 396 20,701 1,907 768 2,675 1961 16,704 1,636 643 2,279 2,090 332 54 386 18,794 1,968 697 2,665 1962 15,068 1,699 579 2,278 1'758 333 46 379 16,826 2,032 625 2;657 1963 13.369 1,766 512 2,278 1,425 332 37 369 14794 2,098 -549 2,647 1964 11,603 1?836 442 2,278 1,093 333 29 362 12,696 2,169 471 2,640 196567 1909 370 2,279 760 333 20 353 10527 2,242 390 2,632 1966 7858 1611 294 1,9C5 427 333 11 344 8,285 1,944 305 2,249 1967 6,247 1,295 237 11532 94 63 3 66 6,341 1,358 240 1,598 1968 4,952 1,346 185 1,531 31 31 1 32 4983 1,377 186 1,563 1969 3,606 1,400 130 1,530 3,606 1,400 130 1,530 1970 2,206 1,456 74 1,530 2,206 1,456 74 1,530 1971 750 750 15 765 750 750 15 765 Table THAILAND - ESTIMATED CONTRACTUAL INTERIST AND AMORTIZATION PAYMENTS ON THE EXTERNAL PUBLIC DEBT (Continued) (Expressed in thousands of U.S. dollars' Page 2 Sterling securities; I.B.R.D. loans - sterling portion qcal sterling debt Debt out- Payments during year Debt out- Payments during year Debt out. - - Payments during year Year standing Amorti- standing Amorti- standing Amorti- January 1 zation Interest Total January 1 zation Interest Total January 1 zation Interest Total 1952 3,926 236 157 393 439 - 18 18 4,365 236 175 411 1953 3,690 246 147 393 439 - 18 18 4,129 246 165 411 1954 3,444 256 137 393 439 - 18 18 3,883 256 155 411 1955 3,188 266 127 393 439 - 18 18 3,627 266 145 411 1956 2,922 276 117 393 439 21 17 38 3,361 297 134 431 1957 2,646 287 106 393 418 22 17 39 3,064 309 123 432 1958 2,359 298 95 393 396 23 16 39 2,755 321 111 432 1959 2,061 310 83 393 373 24 15 39 2,434 334 98 432 1960 1751 323 70 393 349 25 14 39 2,100 348 84 432 1961 1,428 336 57 393 324 26 13 39 1,752 362 70 432 1962 19092 350 43 393 298 26 12 38 1,390 376 55 431 .1963 742 364 29 393 272 28 11 39 1,014 392 40 432 1964 378 378 7 385 244 29 10 39 622 407 17 424 1965 215 30 8 38 215 30 8 38 1966 185 31 7 38 185 31 7 1,8 1967 154 32 6 38 154 32 6 38 1968 122 33 5 38 122 33 5 38 1969 89 35 3 38 89 35 3 38 1970 54 36 2 38 54 36 2 38 1971 18 18 - 18 18 18 - 18 Table A-2: TRAILAND - ESTIMATED CONTRACTUAL INTEREST AND AMORTIZATION PAYMENTS ON THE EXTERNAL PUBLIC IEBT (Continued) (Expressed in thousands of U.S. dollars) Page 3 Total debt Service payments Year Debt outstand- Payments during year by currency ing January 1 Amortization Interest Total U0s. dollars Sterling 1952 34,409 569 1,287 1$856 1,445 411 1953 33,840 578 1,268 1,846 1,435 411 1954 33,262 1,063 1,246 2,309 1,898 411 1955 32,199 1,091 1,209 2,300 1,889 411 1956 31,108 1,977 1,162 3,139 2,708 431 1957 29,131 2,041 1,090 3,131 2,699 432 1958 27,090 2,109 1,013 3,122 2,690 432 1959 24,981 2,180 935 3,115 2,683 432 1960 22,801 2,255 852 3,107 2,675 432 1961 20,546 2,330 767 3,097 2,665 432 1962 18,216 2,408 680 3,088 2j657 431 1963 15,808 2,490 589 3,079 2,647 432 1964 13,318 2,576 488 3,064 2,640 424 1965 10,742 2,272 398 2,670 2,632 38 1966 8,470 1,975 312 2,287 2?249 38 1967 69495 1390 246 1,636 1,598 38 1968 5,105 1,410 191 1,60i 1?563 38 1969 3,695 1,435 133 1,568 1,539 38 1970 2,260 1,492 76 1,568 1,530 38 1971 768 768 15 783 765 18 IBRD - STATISTICS SECTION October 24, 1952