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Financial Markets > Introduction to Government Debt Securities > Interesting Content > Benefits of Government Debt Securities
Service Manager   SOMSRI (66(0)2283-5466)    WARAPORN (66(0)2356-7072)   
  Benefits of Government Debt Securities 
Title  

 

Benefits for the issuers and the economy

  • Less reliance on foreign source of funds.
  • More effectiveness in fund management as the issuers can exactly determine their borrowing costs and period.
  • Government debt securities can be used, by central bank, in monetary policy implementation in order to maintain liquidity and interest rate at a level appropriate to economic environment and stability.

Benefits for the investors

  • Earn stable income
  • Debt securities can be placed as collaterals with government agencies or financial institutions in many cases such as
    • tender submission
    • obligation under contract e.g. contract for building or road construction, drain pipe installation and  souvenir  production
    • advance payment guarantee for employment
    • education purpose honesty of employee and loan contract
    • collateral for electricity consumption payment
    • legal reserves maintained by commercial banks or financial institutions or as legal reserves that insurance companies maintain with the Department of Insurance
    • bail to the court or police station
    • respite for tax  payment
    • bank loan or opening overdraft account with commercial banks
    • requesting for a letter of guarantee
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