Prasarn Trairattanaworakul, the Kasikorn Bank's president, was quoted by the official Thai News Agency on Thursday as saying that Thailand's foreign debts in 1997 doubled its international reserve. Most were short-term debts, but at present, the foreign debts are at a lower level than the international reserve.

Prasarn said he believed Thailand would not experience an economic meltdown, a crisis like that in 1997, when foreign investors were shocked and did not hesitate to withdraw their assets from the country.

The Kasikorn Bank executive said there is no sign of a financial crisis because the country's fiscal position had improved significantly.

Prasarn also predicted that the Bank of Thailand's Monetary Policy Committee will increase the policy interest rate by 25-50 basis points at its meeting on July 16.(Xinhua)