Global financial crisis won't spread to BRIC economies' New York Times Posted: Sep 27, 2008 at 0029 hrs IST
Washington, September 26 As Europe and Asia play down the need for an American-style bailout for their banks, the crisis may threaten a different class of countries: those in Eastern Europe, Latin America and Africa that depend on foreign capital and shoulder American-style trade deficits. However, managing director of the International Monetary Fund (IMF) Dominique Strauss-Kahn says the four largest emerging-market countries - China, Russia, Brazil and India or BRIC - which are running healthy trade surpluses or have hundreds of billions in foreign exchange reserves would not be affected, though Russia is vulnerable to a drop in Oil prices. Alarmed by the threat, Strauss-Kahn is calling for a multilateral consultation - involving the United States, Europe, China and other financial powers - to develop a coordinated response to the crisis. "We're facing a systemic crisis, and it needs a systemic response," Strauss-Kahn said in an interview on Wednesday. "The IMF is the right place to organise a global response to weaknesses in the global financial system." His initiative is an attempt to thrust the fund back into the thick of world events - a role it played in previous financial crises in Asia, Russia and Latin America, but has not played in the current turmoil Global financial crisis won't spread to BRIC economies' Trouble shared is trouble halved. >>>>>>>>>>>>>>>Lee Iacocca --~--~---------~--~----~------------~-------~--~----~ You received this message because you are subscribed to the Google Groups "Kences1" group. To post to this group, send email to [email protected] To unsubscribe from this group, send email to [EMAIL PROTECTED] For more options, visit this group at http://groups.google.com/group/kences1?hl=en -~----------~----~----~----~------~----~------~--~---
