Back from the Brink: Thailand's Response to the 1997 Economic CrisisThis essay reviews the traumatic experience of Thailand's economy during 1997-1999, describes the policy response, and draws lessons for the future. Whereas the country's economic performance until 1996, was exemplary within the developing world - consistent growing, high gross domestic product rates, exports expansion, and in-flow of foreign capital - the financial downturn of 1997 gave way to a deep economic recession, which diminished asset values, and threatened to unleash large-scale unemployment. The book analyzes the crisis, highlighting the tension, and controversy that surrounded structural reform, and, describes the ongoing legal, regulatory, and institutional reforms - all designed to ensure prudent decision-making by Thai bankers, and corporations. The book concludes with an outline of the steps needed to complete the reform program, in a way that will consolidate the fragile economic recovery, and allow sustained growth. The economic history of the crisis - highlighted in Figure 1-1 - shows the movements of selected indicators of the economy, during this volatile period. |
Contents
Fastforward | 1 |
Crisis Countdown | 19 |
The Rescue Package | 27 |
Copyright | |
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accounting standards asset management companies baht per month Bangkok Bangkok Bank Bank of Thailand bankruptcy billion baht capital CDRAC central bank corporate governance costs country's creditors Debt Restructuring debtor-creditor debtors declined demand Development directors domestic economic effect enforcement enterprises exchange rate exports FIDF Figure finance companies financial institutions fiscal policy fiscal stimulus foreign framework funds growth implement improve income increased insolvency interbank rate intercreditor interest rates international best practice July Oct Jan June Krung Thai Bank levels of nonperforming liability liquidity support losses macroeconomic manufacturing market-led Ministry of Finance monitored nonperforming loans percent of GDP poor private sector Public Limited Companies quarter of 1998 Radanasin Bank recapitalization recovery regulatory resolution process risk secured lending shareholder social Source state-owned stock exchange strategy strengthened structural reform Thai Thailand data throughout the crisis tions U.S. dollar weaknesses workers workouts World Bank