Thailand’s Cabinet has approved 18 billion baht in borrowing for the State Railway of Thailand (SRT) to cover operating expenses and address cash flow constraints during the 2027 fiscal year. The approval follows an 18 billion baht cash shortfall in fiscal 2026, when the railway operator’s payments exceeded its receipts. The funding will provide working capital to support continued railway operations amid financial losses and substantial expenditure on interest, borrowing costs, infrastructure maintenance, repairs to buildings and rolling stock, train operations and pensions.
The Ministry of Finance will guarantee the borrowing and determine the funding sources, loan terms and financing arrangements, while SRT will remain responsible for repaying the principal, interest and associated borrowing costs. The proposal was reviewed by the Public Debt Management Office, the Budget Bureau and the National Economic and Social Development Council, which raised no objections. The borrowing will be subject to public debt management procedures and the required legal and administrative approvals.
