Arab Monetary Fund readies plan to tackle crisis
Dubai, December 25, 2008
The Arab Monetary Fund has a Pan-Arab initiative aimed at reducing the effects of the financial crisis, a senior regional banker has revealed.
Secretary General of Union of Arab Banks Dr Fouad Shaker said in an interview with CNBC Arabiya that the problems of the current financial crisis have not ended, expecting it to affect the oil sector following the impact on the American auto industry.
He considered that the main factor affecting the Arab economies is the drop in oil prices, which also affect the non-oil Arab countries in addition to the tourism industry and export.
Dr Shaker said that such economies would not tend to have negative growth, but will decline in growth rates, and this will not be less than two per cent on the overall level.
Commenting on the situation of Arab banks, he said, 'Banks in the region will be affected by this crisis, but will do better than other banks in other parts of the world, stressing the need to increase the capital and the investments alongside having a new policy to detect early warning signs for the crisis,'
Dr Shaker explained that there is a new vision being formulated focusing on the role of the central banks in the world and the role of the International Monetary Fund.
All must be subject to the same treatment, and adhere to the same rules and regulations, he said.
'The feeling of hope of getting out of the global financial crisis will begin by mid-2009, and by end of the year, some of the losses experienced by the real estate market will be compensated for,' added Dr Shaker.