Big Bailouts

South Korea, the world’s 11th largest economy, is expected to be the latest Southeast Asian country to receive a loan from the International Monetary Fund to help it prop up its ailing currency and stock market. Among the countries that have received IMF aid:

South Korea

The IMF-led rescue package is expected to exceed $20 billion, with some officials predicting it could climb as high as $80 billion. Aid is needed to help the country recover from a currency crisis prompted by a vicious cycle of corporate bankruptcies, rising bad loans, a loss of foreign investors’ confidence, a plunging currency and falling stock prices.

Indonesia

Indonesia requested a $23-billion loan from the IMF in return for economic reforms, including closing 16 commercial banks and trimming tariffs. Officials announced the bailout package in October after the devaluation of the Indonesian rupiah caused it to lose 35% of its value against the dollar.

Phillipines

After officials devalued the Phillipine peso, the IMF put together a $1-billion rescue program in July.

Thailand

IMF officials say Thailand has “made a good start” in meeting conditions of an August $17.2-billion loan package issued after the bhat lost 30% of its value to the dollar. The package included IMF demands for the liquidation of 42 financial institutions. Slow economic growth, plunging real estate values and problems in the banking sector triggered the July devaluation of the bhat.

Mexico

A $50 billion IMF-led bailout package secured by the country in early 1995 was the agency’s largest rescue package to date. Loans from the U.S., which the country repaid early, and the IMF helped Mexico repay foreign lenders and halt collapse of the peso. The austerity measures the country was forced to implement to meet conditions of the loan, however, were hard on citizens.

Sources: Times and wire reports