SEPC to throw THAI lifeline

Thai Airways International is being thrown a lifeline in the form of a bailout loan, finance permanent secretary Prasong Poontaneat said on Wednesday. The Finance Ministry is expected to guarantee a loan worth 50b baht to rescue the national carrier. The State Enterprise Policy Committee (SEPC) meeting approved in principle the proposal to rehabilitate the national carrier. The committee, chaired by Prime Minister Prayut Chan-o-cha, assigned a financial consultant to work out a rehabilitation blueprint to be submitted to the THAI board. Central to the plan is the bailout loan to be made available to the airline. A source at Government House said the Finance Ministry will guarantee the loan until the end of the year. The amount falls below the original plan for obtaining a 70b baht loan. At the same time, THAI will have to negotiate its debts with creditors and adopt cost-cutting measures. The loan will be disbursed in tranches to spur the airline to stay on track with rehabilitation.<br/>