Updates from the Managing Director

Ibrahim_1

With nothing stopping the United States from voting against SEA’s efforts in the IMF, we need to be prepared for the worse. Holding almost 25% of the total votes in the IMF, should the US vote against the LA’s proposed within the IMF our efforts shall all be in vain. This also provides them with the opportunity to abuse their share of votes to push for solutions that they propose — and are most definitely in their best interests (not ours!). We advise all South East Asian nations to remain cautious of the power that a single nation has over international efforts in solving this crisis.

Notice Over the past 2 months, the Thai Bank has gradually lowered its interest rates to 10 percent. Despite this change in interest rates, capital control, investor confidence are among a multitude of issues. While protests have subsided, the crisis is still ongoing. When will Director Bidaya do something?

Without bailouts, Malaysian bank failures don’t seem to be stopping. Does UMNO have an answer?  Since June 1998, Malaysian banks have suffered from liquidity problems stemming primarily from Non-Performing Loans. Public confidence in banking has fallen significantly, and the risk of a devastating bank run is high.  Strangely, however, Finance Minister Anwar Ibrahim seems adamantly against seeking help from the IMF. With Malaysia’s neighbours partaking in billions in essential loans, Malaysian banks feel betrayed by the Finance Minister's refusal on grounds such as ‘sovereignty’. Banks and economists look on for UMNO and Anwar's response to this crisis.

[LOIMOU] BIdaya  

[Lending Arrangement] Muhammad 1  

  The IMF has responded to criticisms of inaction, but economists are wary.  In just over a year, the landscape of Asia’s economies have changed drastically — from a speculative crisis in Thailand, to asset bubbles in Korea, to numerous interlinked crises in Malaysia, Japan, and Indonesia, amongst others. In response, the IMF has granted dozens of billions in loans to Thailand, Korea and Japan, where some improvements have begun to show. However, economists fear numerous further crises on the horizon, alongside still unresolved issues in Malaysia and Indonesia, among others. With numerous Letters of Intent sent by affected and precautious nations, can the IMF afford to keep up its loaning? With dwindling funds, experts claim that the IMF will be forced to be more selective with its loans, and some crises may end up unaddressed. On the other hand, some experts expect more innovation in the IMF’s lending facilities to mitigate shortages in funds.  How long can the IMF ...