The government will need to formulate and implement further restructuring measures, including recapitalization measures. As shown in Table 5, this sum consisted of The auction covered the loan portfolios of 56 companies selected for closure in December There are many other questions to be answered in relation to financial system restructuring. We begin with a look at several of the countries involved and follow up with the causes of the crisis. On July 2 , Thailand shifted from a dollar-pegged fixed currency policy to a floating exchange system which resulted in the devaluation of the baht.
ASIAN FINANCIAL CRISIS IN THAILAND
In some Asian countries, however, the problems are now so serious that financial system reform and corporate debt restructuring would not be possible without injections of public money from other countries. Businesses were unable to pay the high interest rates. The chaebol of multinational conglomerates that dominate the economy, fueled by easy money, borrowed too much, and expanded recklessly, without regard for adequate returns. In the early s, foreign money poured into Thailand's economy through financial markets and direct investment. Among its provisions, the Frank- Sanders amendment requires the U. As was pointed out at a conference in Beijing in January , China's national economy is being threatened by a latent monetary credit crisis. Fifth, the crisis is causing economic turmoil that is exposing weaknesses in many financial institutions in Asia; some have gone bankrupt.
JSTOR: Access Check
The economic problems of the so-called Asian Tigers not only are adversely affecting the economies of Japan and others in the region, but, to some extent, an economic slowdown could spread to Latin America and the United States. Any company in need of foreign exchange, however, usually is better off when foreign exchange markets are stabilized. As of August , there were , vacant housing units in Bangkok and many unfinished offices and empty hotels. In December , it was decided to close 56 of the 91 finance companies. The only action in relation to state banks has been the announcement of a merger between four banks.
Finance company assets were subject to considerable erosion in the wake of the currency crisis because of this lending mix. On July 2 , Thailand shifted from a dollar-pegged fixed currency policy to a floating exchange system which resulted in the devaluation of the baht. To begin with, the government pursued a restructuring policy which promoted bank mergers. As was pointed out at a conference in Beijing in January , China's national economy is being threatened by a latent monetary credit crisis. In October, a zero-coupon bond issue with a total face value of 11 billion ringgits was issued through allocations to financial institutions.