Thailand’s long-term debt stable: Union Bank of Switzerland, Illustrative photo (Photo: AFP/VNA)

Bangkok - The Union Bank of Switzerland (UBS) has rated Thailand’s long-term debt sustainability as stable, despite earlier concerns that it might face a downgrade in its credit rating if there were efforts to stimulate the economy through the 10,000 THB (271 USD) digital wallet scheme.

Government spokesperson Chai Watcharong said that while UBS's latest report on the Asia-Pacific Economic Perspective noted some discrepancies in fiscal expenditures, the public debt-to-GDP ratio, currently at 70% according to the latest IMF Article IV report, aligned with the sustainability of the debt and financial safeguards and legal institutions were still effectively in place.

The government spokesperson reiterated that the assessment of Thailand's Sovereign Credit Rating did not solely depend on the digital wallet programme, with various rating agencies emphasising that the country's creditworthiness will be influenced by such factors as medium-term fiscal consolidation plans and economic growth, beyond any specific financial policy.

Chai admitted that the country's economy, which has seen one of the lowest growth rates in the Association of Southeast Asian Nations (ASEAN) in recent years and is below the country's potential, is considered a critical risk factor that needs urgent remediation. This requires significant revenue enhancement measures to stimulate the economy to grow at a higher sustained rate, both in the short term, the digital wallet being one of those measures, as well as in medium and long-term strategies, he added.