moody's concerned about longer term
Tighter competition coming to the region
while Thailand's short - and medium - term debt service ability remains strong, Moody's Investors service has expressed concern about prospects four to five years in the future, according o Somkid Jatusripitak , the finance minister.
Dr Somkid, following a meeting with Moody's executives, said the credit rating rating agency had expressed concern about Thailand's long-term position in light of stiffening competition in the region. He said the government was well aware of the obstacles and challenges ahead, and was determined to press forward with industrial reform and measures aimed at supporting entrepreneurship.
Moody's Investors Service currently maintains a Baa3 rating for Thailand, it's lowest investment-grade rating.
A team of Moody's officials is meeting Thai authorities in preparation for a rating review. credit ratings are closely watched by the international financial markets, and help determine the borrowing costs of new debt issues.
Dr Somkid said he emphasised the government's determination to take a balanced policy approach to the productive economy and financial sector.
Policies would seek to strengthen the domestic economy and reduce the country's reliance on exports to lower the risk of external shocks.
Dr Somkid noted in January that the country posted its first trade deficit in over three years on a customs basis.
Recent figures have shown the trade account has come back into surplus, with preliminary data showing exports of $ 5.8 billion in March against imports of $ 5.1 billion.
Dr Somkid said in terms of fiscal policies, the government was intent on expanding the tax base and maximising value from state enterprises on the local stock exchange.
The government last week announced it would list 15 state enterprises in the market though 2003, raising total market capitalisation by 900 billion Bath.
Dr Somkid said he had clarified that state-owned financial institutions would be tasked with talking a leading role in extending new loans to the corporate sector. Once economic recovery was secure the banks would be privatised as the state diluted its shareholdings.