The senior Moody's analyst who said eight Thai banks might be insolvent resulted in furious reaction in Bangkok yesterday.
Prime Minister Chavalit Yongchaiyudh described comments by Moody's Nicholas Krasno as 'unfair, unfounded and below-the-belt'.
'This sort of talk is just going too far,' he said.
Finance Minister Thanong Bidaya, noting Moody's did not examine smaller Thai banks in detail, said: 'This is alarmist talk. Frankly I am surprised . . . the finance business is a confidence business and this sort of talk doesn't help.' Moody's officials tried to calm Thai nerves by suggesting Mr Krasno may have been misinterpreted.
'The statement meant that by the end of 1998 five or so banks might require public assistance to protect depositors and creditors,' said Jerome Fons in New York.
Many investment analysts in Bangkok said Mr Krasno had merely voiced many people's fears.
