The crisis is not as close as we want

Yesterday in Istanbul held a meeting of finance ministers of the G7 and the heads of central banks.

The focus was the global financial crisis, weak dollar and the state of the banking sector. World Bank reported that the crisis is far from complete for many developing countries in Eastern Europe and Central Asia. Although growth is beginning to strengthen, families and governments are forced to borrow money, while capital inflows from abroad to the region is unlikely to return to pre-crisis levels.
„The crisis is not even close to its end in Eastern Europe and Central Asia,“ said Gil Indermit, chief economist of the World Bank for the region. Gill also said that Turkey and Russia will be affected by the growth of deep poverty in the world. At a press conference on „Current state of the economy in Europe and Central Asia, he argued that it believes that the crisis was over in Europe and Central Asia revival is very low. The region has over 350 billion foreign debt and it is not clear yet how it will be funded in 2010. According to him the situation in the region is not good for households. Unemployment and poverty are increasing. The chief economist of the World Bank pointed out that it is a very good situation of growing countries of the G-20. According to him each year so far has been registered an increase of the middle class, while this year the situation is reversed. Number of very poor in this region will increase by 15 million people in the region has 145 million poor people and as part of the global problem of poverty will inevitably increase will affect Turkey and Russia, he said. Within the annual meeting of IMF and World Bank in Istanbul, France and Britain announced it would allocate $ 4 billion to help poor countries.
„This amount is too small against the real needs of those countries that are soon to 17 billion dollars, but our commitment is serious,“ said Economy Minister Christine Lagarde of France.
The amount will be given in the form of two loans by 2 billion dollars, which France and Britain will allocate special fund for the International Monetary Fund, intended for the financing of poor countries.
Russia may take a loan of between two and four billion dollars from the World Bank in 2010, said Russian Finance Minister Alexei Kudrin. He stated that this issue was discussed at a meeting with World Bank head Robert Zoellick. „We are interested in a simple and fast credit. We agreed to hold negotiations on the conditions. This will be an investment credit and finance. This does not suggest any major programs and agreements, „said Zoellick. Kudrin stressed that Moscow will provide assistance of 50 million dollars to the poorest countries hit by the global financial crisis. According to him, the funds will be provided in the next three years – 20 million dollars in this and 15 million in 2010 and 2011.
In the communique after the meeting participants emphasized that despite the positive signals, demonstrating the economy and financial markets in recent months, still no cause for complacency.
„No place is complacency, while growth prospects remain fragile and the situation on the labor market has not begun to improve. We will continue to deliver the anti-crisis measures, while the recovery does not happen, „noted the document.

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