By Finfacts Team
Feb 24, 2009 - 6:30:33 AM
The World Bank said on Monday that $120 billion is required to recapitalise banks in Central and Eastern Europe. It said just six months ago, banks were flush with cash. Some thought they might even escape the credit crisis hitting the United States. Now low interest rates and easy credit have given way to a dearth of liquidity and capital problems in the banks amid slowing global growth and trade.
Austrian banks have lent €230 billion, the equivalent of 80% of Austria's GDP, to the region, according to the Economist."A failure rate of 10% would lead to the collapse of the Austrian financial sector," reported Vienna's Der Standard two weeks ago.
Stephen Jen of Morgan Stanley, says Eastern Europe has borrowed $1.7 trillion abroad, much on short-term maturities. It must repay – or roll over – $400bn this year, equal to a third of the region's GDP....
If Iraq can make monetary policy, they can manage their own country.
Iraq Central Bank adviser: Iraq is committed to the policy of liberalization of current accounts (click here)
February 25, 2009
...The Minister of Planning and Development, Ali Baban said on Monday that the five weekly sessions convened by the Central Bank for the sale and purchase of the dollar is the process of smuggling of Iraqi funds abroad, and that the money smuggled through auction and offices of Iraqi central bank is for the private sector funds for establishing successful mega-projects, in Jordan and Syria....
