The European Central Bank has pumped hundreds of billions of extra euro-denominated financing into the banking system and revived emergency dollar financing lines with help from the Federal Reserve.
When the baht tumbled in July, TPIchief executive Prachai Leophairatana, whose family owns the majority share of the company, quickly hired Chase Manhattan and Merrill Lynch as advisers to restructure TPI's $2.8 billion in dollar- denominated debt, and the finances of an affiliated concrete business.
Long-term "infrastructure bonds", denominated in inflation-adjusted pesos, have financed much of the $8 billion investment in roads, airports and the like.Getting paid, another Latin American headache, is relatively easy in Chile.
The segment includes Turkish Lira and foreign currency denominated working capital loans, small business loans, medium-term financing for investments, foreign trade financing, letters of credit and guarantee, foreign currency trading, corporate finance services, and cash and deposit management services.
Singapore Telecommunications said yesterday that it would sell one billion Singapore dollars ($574 million) in bonds, the biggest issue in memory denominated in Singapore's currency, to help finance acquisitions overseas.
The country's banks had expanded aggressively in the last decade, and though they largely stayed away from troubled mortgage securities, the global tightening of credit this year left them unable to finance their debts, which are largely denominated in foreign currencies.
"The issue is denominated in euros because it is helping to finance the company's European expansion," says Dalton Chandler of Needham & Co.
When credit tightened and the krona fell this year, they were unable to finance their debts, many of which are denominated in foreign currencies.
Unfortunately, though, when global credit markets closed up, and the krona fell, "the Icelandic banks were unable to finance their debts, many of which were denominated in foreign currencies," The Times reported.
The Dallas hedge fund manager (no relation to the famous Bass family of Fort Worth) is so convinced the Japanese government's profligate spending will drive the nation to the brink of default that he financed his home with a five-year loan denominated in yen, which he hopes will be cheaper to pay back than dollars.
Japan's debt is overwhelmingly financed by its own citizens, he noted; it is denominated in its own currency, and Japan runs a steady current-account surplus, all of which insulate it from bond market pressure.
