Aziz assuages worry over global meltdown, but still cautious
Saturday, 6 December 2008
FE Report
Finance adviser Dr AB Mirza Azizul Islam said Thursday Bangladesh has neither to be alarmed by the global financial meltdown nor complacent about being unscathed.
"Bangladesh will not be a part of the gloomy picture," he said while speaking as the chief guest at the launching of the International Monetary Fund's (IMF) Regional Economic Outlook at the Bangladesh Enterprise Institute (BEI) in the city.
The BEI president Farooq Sobhan chaired the function.
Speaking on the occasion the finance adviser also stressed for necessary precautionary measures to face any unforeseen crisis.
"The government has already constituted a technical committee to monitor the impact, if any, and undertake necessary measures," Dr Islam said.
He said if any particular sector was seen vulnerable to the global financial meltdown, necessary actions would be taken immediately.
Launching the outlook the IMF Resident Representative in Bangladesh Jonathan Dunn said Asia looks vulnerable and might witness a slower growth.
"In particular, global financial stresses and the process of de-leveraging by financial institutions are expected to continue beyond the next year," he said.
This will dampen economic prospects in the region through a number of potential channels, notably lower demand for Asia's exports, tighter funding conditions, more volatile capital flows, depressed equity prices and confidence and deteriorating loan quality.
The IMF chief in Bangladesh, however, did not focus on the impact of the global financial crisis on Bangladesh in the outlook.
The outlook says a severe global recession, combined with a deeper than expected credit squeeze, would have significant spillovers in the region on account of both exports and a range of financial channels.
Asia's trade integration with the rest of the world has increased over the last decade, it said.
Policies to safeguard financial systems and maintain orderly credit conditions would be the key. "While the precise measures will vary across countries, efforts should include strengthening of crisis management systems and contingency planning, enhancing oversight of bank's liquidity management and improving risk management to address the likely rise in non-performing loans," the IMF outlook stated.
Temporary credit guarantees may be necessary to ensure the normal flow of credit and authorities have to stand ready to recapitalise banking system, if needed, Mr Jonatahan said.
He said beyond considerations of inflation, monetary policy would have to ensure sufficient provision of liquidity for orderly market functioning.
The BEI president urged the donor agencies to come up rigorously to salvage the weaker economies of the Asian region.
Finance adviser Dr AB Mirza Azizul Islam said Thursday Bangladesh has neither to be alarmed by the global financial meltdown nor complacent about being unscathed.
"Bangladesh will not be a part of the gloomy picture," he said while speaking as the chief guest at the launching of the International Monetary Fund's (IMF) Regional Economic Outlook at the Bangladesh Enterprise Institute (BEI) in the city.
The BEI president Farooq Sobhan chaired the function.
Speaking on the occasion the finance adviser also stressed for necessary precautionary measures to face any unforeseen crisis.
"The government has already constituted a technical committee to monitor the impact, if any, and undertake necessary measures," Dr Islam said.
He said if any particular sector was seen vulnerable to the global financial meltdown, necessary actions would be taken immediately.
Launching the outlook the IMF Resident Representative in Bangladesh Jonathan Dunn said Asia looks vulnerable and might witness a slower growth.
"In particular, global financial stresses and the process of de-leveraging by financial institutions are expected to continue beyond the next year," he said.
This will dampen economic prospects in the region through a number of potential channels, notably lower demand for Asia's exports, tighter funding conditions, more volatile capital flows, depressed equity prices and confidence and deteriorating loan quality.
The IMF chief in Bangladesh, however, did not focus on the impact of the global financial crisis on Bangladesh in the outlook.
The outlook says a severe global recession, combined with a deeper than expected credit squeeze, would have significant spillovers in the region on account of both exports and a range of financial channels.
Asia's trade integration with the rest of the world has increased over the last decade, it said.
Policies to safeguard financial systems and maintain orderly credit conditions would be the key. "While the precise measures will vary across countries, efforts should include strengthening of crisis management systems and contingency planning, enhancing oversight of bank's liquidity management and improving risk management to address the likely rise in non-performing loans," the IMF outlook stated.
Temporary credit guarantees may be necessary to ensure the normal flow of credit and authorities have to stand ready to recapitalise banking system, if needed, Mr Jonatahan said.
He said beyond considerations of inflation, monetary policy would have to ensure sufficient provision of liquidity for orderly market functioning.
The BEI president urged the donor agencies to come up rigorously to salvage the weaker economies of the Asian region.