SOUTH EAST ASIAN CRISIS

BY T.CHIDAMBARAM

INTRODUCTION
The term financial crisis is applied broadly to a variety of situations in which some financial institutions or assets suddenly lose a large part of their value FINANCIAL crises were associated with - Banking panics - Stock market crashes - Recessions Bubbles - currency crises

BEFORE CRISIS STARTED

From 1985 to 1996, growth rate averaging almost 9% annually - increased pressure on Thailand's currency, the baht From 1985 until July 1997, Baht was pegged at 25 US$ Before it started

WHAT HAPPENED IN THAILAND?

Mid-May 97: Thai Baht was hit by massive speculative attack Spark End-June 97, Thai Prime Minister declared that he would not devaluate the Baht Thai Government failed to defend the Baht against International speculators Financial Crisis hits

CTND..
Booming Thai Economy ground to a halt, contracted by 1.9% Massive lay-offs in Finance, Real Estate and Construction: Unemployment rate all time high Huge numbers of workers returning to their villages in the countryside and 600,000 foreign workers sent back Stock market dropped 75%, Finance One collapsed Baht reached 56 US$ in Jan 98 What happened in Thailand