Stages of the financial crisis in Asia 1997.docx

At the same time capital leaving europe naturally

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advantage of the recession in Europe, are beginning to seize the markets of the latter. At the same time, capital leaving Europe naturally moves to a promising, growing Asia, even more opening the way for Asian goods already to the markets of Europe. Intensive GDP growth is planned and is beginning to be realized. A dangerous trend is beginning to emerge, characterized on the one hand by the growth of the state's debts, and with the other external "decency" of enterprises that have received long-term government loans. On the third side, there is a tendency to increase the level of "bad" projects developed and implemented by specialists, who do not effectively use the growing flow of money. Thus, the crisis of investment was fully prepared by all previous processes. When the time came for Asian states to pay the debts, they demanded them from the enterprises that built on them the basis of their financial pyramids, sharply reducing working capital. As a result, a crisis broke out, which manifested itself in: Impossibility of repayment of debts by Asian states Decrease in the assets of creditor enterprises. As a consequence, the deterioration of the condition of related enterprises.
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