Economic problems persisted. From 1987 to 1996 Thailand experienced a current account deficit averaging −5.4 percent of GDP per year, and the deficit continued to increase. In 1996, the current account deficit accounted for −7.887 percent of GDP (US$14.351 billion). A shortage of capital was another problem. The first Chuan Leekpai government, in office from September 1992 to May 1995, tried to solve this problem by granting Bangkok International Banking Facility (BIBF) licenses to Thai banks in 1993. This allowed BIBF banks to benefit from Thailand's high-interest rate by borrowing from foreign financial institutions at low interest and loaning to Thai businesses. By 1997 foreign debt had risen to US$109,276 billion (65% of which was short-term debt), while Thailand had US$38,700  billion in international reserves. Many loans were backed by real estate, creating an economic bubble. By late 1996, there was a loss of confidence in the country's financial institutions; the government closed 18 trust companies and three commercial banks. The following year, 56 financial institutions were closed by the government.