The Cabinet of Thailand has approved a proposal from the Ministry of Transport allowing the State Railway of Thailand (SRT) to borrow THB18 billion during fiscal year 2026 to cover operating expenses and maintain liquidity amid persistent financial losses. The measure aims to ensure uninterrupted railway services through September 2026.
The SRT continues to face significant fiscal challenges stemming from interest and loan repayment obligations, coupled with high maintenance costs for ageing rail assets. Much of its revenue is allocated to maintaining critical infrastructure, including tracks, bridges, signalling systems, and safety installations. The agency also faces mounting pension liabilities, contributing to accumulated debts of around THB300 billion.
The approved loan will provide temporary relief for the debt-ridden operator, enabling it to fund daily operations, maintenance, and staff expenses while broader financial restructuring plans remain under review.