| More seek credit counseling
NEW YORK -- Consumers struggling to keep up with higher gas prices and other rising household expenses have been pulling out their credit cards more often -- sometimes too often. Credit counselors report a sharp rise in the number of families seeking help, many of whom end up on belt-tightening budgets and debt management programs to pay down their balances. .
Finance Ministry to issue B300bn worth of bonds every year
The Finance Ministry plans to float 300 billion baht worth of government bonds each year to help establish clear benchmarks for the bond market under a new public debt management law. The new law has already passed the first reading in the National Legislative Assembly (NLA) and is now being reviewed in an NLA committee. Nattapol Chavalitcheevin, a spokesman for the NLA committee, said the law was expected to pass the second and third readings next month. Under the new law, the Finance Ministry hopes to establish new benchmarks at the five- and 10-year points on the yield curve through new issues worth up to 60 billion baht per lot. The Thai bond market currently has 4.6 trillion baht worth of outstanding debt, equal to around 53% of the country's gross domestic product.
TECO moves to reduce debt
TECO Energy Inc. said it would begin a series of debt tender and exchange offers as part of its debt management plan. The plan will allow the company to make additional investments in Tampa Electric Co. to support its growing capital requirements associated with customer growth, transmission and distribution system reliability improvements, and environmental compliance, TECO said in a release. The plan calls for replacing TECO Energy notes that mature between 2011 and 2015 with notes issued by TECO Finance Inc., the company's wholly owned finance subsidiary. Additionally, TECO Energy notes that mature in 2011 and 2012 will be extended and coupon on them reset. TECO has committed to pay off up $500 million in debt through 2010, beyond the $357 million of debt that matured this year, according to the release.
Farmers rally, call for debt-relief
More than 2,000 farmers rallied in Bangkok yesterday demanding the government ease their heavy debt burden urgently through its Farmer Rehabilitation and Development Fund. The rally by the Indebted Farmers Network took place in front of the Agriculture and Cooperatives Ministry. Vichien Pong-iam, the protest leader, said the farmers came from the Central Plains and the Northeast. They wanted the board fund to set up a subcommittee to find ways to curb the problems of indebted farmers and shore up the prices of farm products. Besides, the protesters also demanded the dismissal of Thawee Wiriyathoon, who heads the fund's management, and an investigation into his performance. Mr Vichien alleged that management of the fund under Mr Thawee's supervision had caused great damage to farmers.
Sumitomo Trust, Aozora Bank to form broad business tie-up
Sumitomo Trust & Banking Co. and Aozora Bank announced Tuesday they will form a comprehensive business tie-up in the three fields of real estate, trust and asset management. The two banks made the decision to survive intensifying competition from megabanks, but they stressed they will not form a capital tie-up. By offering services and financial products to each other's customers, the two banks plan to strengthen their foundation for higher profitability. The two banks said they will first set up a "tie-up promotion committee" consisting of senior officials of both banks. The committee will decide on the details of the tie-up by March next year, including a possible expansion of the alliance beyond the three fields. According to the agreement between the two banks, an Aozora group company with strength in collecting debts will support the rehabilitation of Sumitomo Trust's debt-ridden client companies using their real estate.
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