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Table of Contents

1 Introduction and Overview

1.1 Introduction To Financial Crisis 3

1.2 Overview of East Asian Financial Status 3-4

1.3 Overview of East Asian Financial Crisis (Thailand) 4

1.4 1997 Thailand Financial Crisis Timeline 4

2 Stage One: Initial Stage Financial Crisis

2.1 Financial Liberalisation. 5

2.2 Current account Imbalances / Deficits. 5

2.3 Assets Price Decline 6

2.4 Increase in Interest Rate. 6-7

3 Stage two: Currency depreciation and Debt Crisis

3.1 Foreign exchange crisis. 8

4 Stage Three: Full-Fledged Financial Crisis

4.1 Banking Crisis 9

4.2 Economic Activities Declines 9

5 Finance Crisis Recovery

5.1 Financing 10-11

5.2 Monetary policy tightened 11

5.3 Structural Reforms 11

5.4 Financial Sector Reform. 11-12

5.5 Corporate Debt Restructuring. 12

6 Conclusion. 12

7 References. 13

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