BoT monitoring public debt

BANGOK, 9 December 2009 (NNT) – The increasing public debt may compromise the country’s sustainable economic recovery, says Bank of Thailand (BoT) Senior Director Suchart Sakkankosone.

Mr Suchart speculated that the increasing debt of Thailand was likely to make investors and analysts perceive the Thai economy as unstable. Other factors influencing investors’ decisions include current account balance and inflation rate but currently these two factors were not of concern, said the director.

The central bank has been closely monitoring public debt following a warning made by the Organization for Economic Co-operation and Development (OECD).

Mr Suchart stated further that the heart of sustainable economic recovery was to stimulate the economy through public expense and suggested that more stimulus measures from the government were still needed for long-term recovery.