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S.Korea in turnaround?
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January 20, 1998: 9:08 p.m. ET
IMF deputy managing director sees early signs of Korean turnaround
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NEW YORK (CNNfn) - International Monetary Fund First Deputy Managing Director Stanley Fischer said Tuesday he sees early evidence of economic recovery in South Korea.
"I think we see in Korea signs of a turn around. It's very early days yet but there is clearly growing confidence in Korea," Fischer said on CNN's "Moneyline with Lou Dobbs".
He said the financial situation is also improving in Thailand and Indonesia has taken steps to stabilize its banking system.
"When we left Indonesia, there was an important item in the agreement which still had to be filled in, in more detail, and that was the restructuring of the banking system," Fischer said. "Work is going on on that right now. That's been a crucial weakness."
He said Indonesian authorities, the IMF, the World Bank and the Asian Development Bank were putting together a package that "will reassure depositors and stabilize the banking system."
He said the IMF and the government were also working on a plan to cope with Indonesia's corporate debt.
"Together with the Indonesians, we're thinking about next steps in dealing with the corporate debt problem in Indonesia," Fischer said.
He said it's only a matter of time before the IMF's efforts in Indonesia will be complete. (136K WAV) or (136K AIFF)
He said the political situation in Indonesia will also be a key issue to watch in the next few days as Indonesian President Suharto announces his running mate.
"Of course, a critical factor is he's going to choose a running mate in the March elections, that should be announced in the next couple of days, that could say a lot of the direction Indonesia will follow," Fisher said.
There is intense speculation over just who Suharto, 76, select as his vice-president and potential successor, given the president's age and persistent questions over his health.
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