The US-based credit rating agency Moody’s Investor
Services has praised the Thai economy and the government’s ability to
control economic risk, and forecast that its revenues this year would exceed
spending by 79 billion baht.
A finance ministry spokesman said on March 22 that
Moody’s Investor Services, in its official report on the Thai economy,
described the Thai economy as having improved, saying that the government
was successfully controlling economic risk. This in turn assisted the
government in drawing up budgetary and fiscal measures, and boosted domestic
The Thai government has predicted economic growth this
year of at least five percent, and has stressed that the outbreak of war
between the US and Iraq should not make any significant dents in key
The Moody’s report also praised Thailand for reducing
foreign debts and boosting foreign reserves to US$36 billion, despite debt
repayments to the International Monetary Fund (IMF) of US$4.7 billion.
The report said the revival of the fiscal sector pointed
to sustainability in that sector in the future, with the government reaping
large amount of revenues as the economy grew in line with new government
However, the report also said that it would be some time
before Thailand’s financial system had fully recuperated, despite the fact
that debt restructuring carried out by several companies had now hit 50
percent of the total target figure.
The report blamed the judicial system for hindering debt
restructuring among small-scale debtors, while praising the Thai Asset
Management Corporation (TAMC) for improving Thailand’s non-performing loan
situation, particularly among banks in which the government had intervened.
The report concluded that the revival of the Thai economy
in 2002 augured well for the present and future, with the strengthening of
the regional economy going hand in hand with the strengthening of
Thailand’s fiscal base. (TNA)