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Technology Stocks : INDONESIA'S PT TELECOM(TLK) -- Ignore unavailable to you. Want to Upgrade?

To: Jay Fisk who wrote (131)	1/25/1998 1:46:00 PM
From: Jay Fisk	Respond to of 947

Slick's problem is minor . . . Another surprise was the extent to which the US banking system was insulated from the problem. According to the statistics of international lending of $ 131 bn by US banks only $ 32 bn or 25 percent was to Asia. The surprise was Europe where the percentages were much higher and indeed where the banks have much more international exposure. So German banks lent $ 178 bn internationally of which $ 47 bn was to Asia. The percentage of Asian lending was similar to the US but the absolute number is higher. The full table is published below International Bank Exposure In US$ Billions Tot US Jap Ger Fr UK All Countries 1,055 131 173 178 100 78 Developed C. 185 16 24 30 14 19 Asia 389 32 124 47 40 30 Indonesia 59 5 23 6 5 4 South Korea 103 10 24 11 10 6 Malaysia 29 2 10 6 3 2 Philippines 14 3 2 2 2 1 Taiwan 25 3 3 3 5 3 Thailand 69 4 38 8 5 3 Hong Kong 222 9 87 32 13 30 Singapore 211 5 65 38 15 25 Tot above Asian 733 40 253 105 58 75 Now make the extreme assumption that all of these loans have to be written off. Let us do the thought experiment where all of these loans are paid taken over by the central bank concerned. Then the injection of liquidity to prop up the banking system would be $ 32 bn in the US, the equivalent of $ 47 bn in Germany and $ 40 bn in France - the European amount of additional liquidity would be almost 3 times that in the US. For Japan the number is $ 123 bn.