The settlement of this crisis was IMF
IMF or International Monetary Fund lent some money to the countries that incurred from the crisis in order to stabilize their currencies. However, Thai government had to sign the agreement to borrow the money.
Here is some detail about the contract
- Thailand had to open free trade.
- Change the regulation about the percentage of stock that foreigners can hold and decrease the stock price.
- Transformation public enterprise to privatization.
- The government's budget has to overbalance 1% of GDP.
- Increase tax. (i.e. Value added tax was increased from 7% to 10%)
- Restriction on the interest rate. ( increase the rate to protect the devaluation of Thai baht)
Some economists argued that this agreement let the foreign countries can take benefits from Thailand. Meanwhile, Thai people faced the high cost of living.