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And Asia's Other Problem Spots

JAPAN               The biggie. Its banks are struggling with an estimated
                    $250 billion in problem domestic loans. Now, the financial
                    sector has serious exposure to $265 billion in Asian
                    loans. The possible solution: a massive securitization of
                    problem debt. Cost of such a program: up to $200 billion.

CHINA               The great unknown. The major state-owned banks have some
                    $90 billion in problem loans. The government has no
                    coherent plan for a workout and hopes economic growth,
                    privatization, and asset sales will avert a crisis.

MALAYSIA            The government says there is no debt crisis, but a large
                    current account deficit, big foreign borrowings, and soft
                    real estate still put the financial system at risk.

DATA: BUSINESS WEEK


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Updated Nov. 6, 1997 by bwwebmaster
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