They will be repaid in full, on time and at the high interest rates that attracted them in the first place. Those rates were high to reflect the higher risks of lending to banks in Asia. But since the IMF bailout program is now making sure that lenders are repaid, there really wasn't any risk. Notably absent from the bailout programs are measures to distribute the burden more equitably between Asian borrowers and foreign lenders. Negotiations to consolidate debts, moderate their terms and stretch repayments over longer periods have been common features of the settlement of international debts in the past, such as in the resolution of the Latin American debt crisis in the 1980s.
Countries adopt a peg as a way of promoting international confidence in their own currency.
Its central bank promises to buy or sell its own currency in foreign exchange markets for hard currency at pegged values. To meet this commitment, the central bank holds reserves of hard currency. Usually the commitment is to a range rather than a precise value, and often the peg crawls down at an announced pace. If a country's exchange rate is pegged too high, its exports are costly to foreigners, while imports seem cheap to residents. An alarming trade deficit then arises.