Furthermore, there is little question that creditors knew this, and
were unlikely to impose stringent loan conditions on well-connected firms. However, it is
probably more accurate to say that these creditors expected these firms to continue to be
profitable and thus repay their loans, rather than that they expected a crash and a subsequent
bailout. Indeed, creditors often complained in Asia that weak bankruptcy laws made it nearly impossible for them to collect on collateral in the event of non-performing loans