To the extent that this left private non-bank borrowers still borrowing excessively in foreign currency, then we might hope that the “consenting adults” view would prevail, leaving the borrower and lender to sort out repayments on a one-on-one basis without putting the entire economy at risk.
But those who are confident that this private non-bank borrowing will be a smooth, well-informed process might contemplate just how quickly private investors changed from wide-eyed enthusiasm to gloomy disillusionment, and how slow the international credit agencies were to see the impending problems. The alarm-bells went off when the building was well-and-truly ablaze.