Publication Code: RM12
by Charl Kengchon
Unlike many developing nations, Thailand has never encountered difficulties in servicing its external debt obligations. The marked absence of severe debt crises in nearly four decades of development is the result of prudent external debt management. Thai laws, regulations, and policy measures have been designed to ensure that external borrowing is not excessive and that the public sector is able to meet its debt obligations.
This study examines Thailand's success in managing its foreign debt by assessing Thailand's foreign loan structure, from both a regional and global perspective. This study covers loans made by the public sector, the non-financial private sector, and Thai commercial banks. Of interest are the factors which determine the disbursement of foreign loans and the impact of such loans on the Thai economy. This study concludes by presenting various of policy recommendations for the future foreign borrowing and loan management.
Printed in June 1995
Copyright © 1995