oussama94
05-28-2017, 23:15
However, in early 1997, a shift in sentiment had begun to occur as international
account deficits became increasingly difficult for respective governments
to handle and lending practices were revealed to be detrimental
to the economic infrastructure. In particular, economists were alerted
to the fact that Thailand’s current account deficit had ballooned in 1996
to $14.7 billion (it had been climbing since 1992). Although comparatively
smaller than the U.S. deficit, the gap represented 8 percent of the country’s
gross domestic product. Shrouded lending practices also contributed
heavily to these breakdowns, as close personal relationships of borrowers
with high-ranking banking officials were well rewarded and surprisingly
common throughout the region. This aspect affected many of South Korea’s
highly leveraged conglomerates as total nonperforming loan values
sky-rocketed to 7.5 percent of gross domestic product
account deficits became increasingly difficult for respective governments
to handle and lending practices were revealed to be detrimental
to the economic infrastructure. In particular, economists were alerted
to the fact that Thailand’s current account deficit had ballooned in 1996
to $14.7 billion (it had been climbing since 1992). Although comparatively
smaller than the U.S. deficit, the gap represented 8 percent of the country’s
gross domestic product. Shrouded lending practices also contributed
heavily to these breakdowns, as close personal relationships of borrowers
with high-ranking banking officials were well rewarded and surprisingly
common throughout the region. This aspect affected many of South Korea’s
highly leveraged conglomerates as total nonperforming loan values
sky-rocketed to 7.5 percent of gross domestic product