Outstanding loans to Asia falling, says BIS report.
Outstanding loans to Asia by financial institutions in 18 advanced nations as of the end of June fell 14.2% from the end of 1997 to 324.8 billion dollars, the Bank for International Settlements (BIS) said in a report released Sunday. The loans dropped nearly to the level at the end of 1995 because financial institutions withdrew their loans due to the financial crisis hitting Asia since the summer of last year, the Basel-based BIS said. Loans by Japan, the largest lender to the Asian region, fell 14.1% to 98.5 billion dollars, the report said. Loans by the United States and France dropped 23.2% and 17.5%, respectively. Meanwhile, borrowing from the Netherlands jumped 18.2% to 20.5 billion dollars as the country made greater inroads into the Asian region, the report said. Loans to China, on the rise until the end of last year, decreased 5.8% and those to South Korea, Thailand and Indonesia also declined, it said. Loans to Asia had nearly doubled in the first four years after the end of June 1993, but have been on the decline since the end of June 1997. With outstanding loans to South America and Eastern Europe continuing to increase, global outstanding loans edged up 0.4% from the end of 1997 to 1,119.5 billion dollars, the report said.
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|Publication:||Asian Economic News|
|Date:||Dec 7, 1998|
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