and worries regarding 4 billion in bad property debt from financial institutions began to grow. But the backdrop does reinforce the need for Bank Indonesia and the Philippine central bank to follow through with the additional rate hikes we are forecasting this year ING's Robert Carnell, chief economist head of research for Asia Pacific, said in a note Friday morning. In an environment with large devaluations and tightened monetary policy, interest rates increased, which further weakened financial institutions, corporate borrowing, business activity, employment and the general economy. The 1996 Z-score of samples of companies in general manufacturing, extractive industries, utilities, and consumer goods are shown in Fig.
It is worth pointing out, however, that there are no countries in the distress zone post-Global Crisis. In contrast, it is estimated that the cost to resolve the banking crisis in terms of GDP could amount to 45 for Malaysia and Thailand; 50 for Indonesia; and 60 for South Korea.(9) Thus, it is not difficult to imagine the extent of damage. These investments in productive capacity could only be justified by very high growth rates, which could not continue forever. Conclusion, in summary, the Philippines was more resilient to the Asian crisis compared to its Asian neighbors, since most of the loans went to the productive sectors of the economy, its financial system was more robust, and available credit to businesses did not contract. By mid-1997, South Korea's short-term borrowings amounted to about.1 times its reserves; Indonesia, about.8 times, and Thailand about.5 times; the Philippines about.9 times, and Malaysia about.6 times.(5). Moreover, twin banking and currency crises were frequent (Reinhart and Rogoff 2009).
Aggregates for other concepts are weighted by GDP.
Dollars at market exchange rates.
China,.R.: Hong Kong; China,.R.: Mainland; East.
Asia ; Emerging Asia ;.
Investment position (IIP) data of individual countries, jurisdictions, and other.