[Financial Times] Asia’s flush with IMF money — how sustainable is this trajectory?

 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 afford to remain the world’s lender of last resort? 

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