This has eased the upward pressure on U. Pearce, Ed Pearce, Michael R. Wall Street Journal, January 8, When a financial crisis hits, however, loans suddenly become more difficult to procure, and lenders may decline to refinance debts. Reportedly, Chinese-made products are flooding into regional markets at the expense of other Asian-made products. It became the hardest-hit country because the crisis not only had economic but also significant and far-reaching political and social implications. This caused deposits to flow from private national banks into state banks and foreign banks.
ASIA’S FOREIGN DEBT: AN EVALUATION AND STRATEGIC OVERVIEW
In general, however, there has been little progress with these asset disposals. If the financial situation continues to deteriorate, commitments for funds that have been pledged by the World Bank, Asian Development Bank and certain nations may be tapped. Until the onset of the currency crisis, Thailand had, for many years, consistently achieved budget surpluses. This has increased the speed and extent to which disturbances in one market can affect another. It became the hardest-hit country because the crisis not only had economic but also significant and far-reaching political and social implications. Failure to do so means that Canadian lenders and creditors could suffer heavy financial losses. Countries also have to assess the possibility of a future crisis in light of immediate political exigencies-particularly elections.
The Asian Financial Crisis
Budgetary Treatment of the International Monetary Fund. The government will need to formulate and implement further restructuring measures, including recapitalization measures. Read more about Corruption in Indonesia. Treasury characterized this as contingent financial support to be used as a temporary "second line of defense" in the event that unanticipated external pressures were to give rise to a need to supplement Indonesia' s own reserves and the resources made available by the IMF. Finance company assets were subject to considerable erosion in the wake of the currency crisis because of this lending mix. For example, approximately 7.
In the Asian countries, the immediate effect of the change in the value of their currencies and outflows of capital is to reduce their trade deficits, and, in some cases, to generate a trade surplus. At the same time, Vietnam and Myanmar had in excess of one-quarter of their foreign debt denominated in U. To end its credit crunch and revive its economy, South Korea must focus not only on the problems with the financial institutions that made the loans, but also on the closely associated problems with the borrowers. The capacity utilization ratio for the manufacturing sector is extremely low, and both consumption and investment remain stagnant. Many Korean merchant banks had borrowed U.