The institutional structure of debt markets in emerging market countries interacts with the currency devaluations to pro

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The institutional structure of debt markets in emerging marketcountries interacts with the currency devaluations to propel theeconomies into full-fledged financial crises. Economists often calla concurrent currency crisis and financial crisis as the "twincrises". Many firms in these emerging market countries have debtdenominated in foreign currency like the dollar and yen.Depreciation of their currencies thus results in increases in theirindebtedness in domestic currency terms, even though the value oftheir assets remained unchanged. Why does the "twin crises"phenomenon of currency and banking crises occur in emerging marketcountry like Malaysia?