EU crisis on Asian finance low - IMF
The eurozone financial crisis has had only a limited impact on Asia,
and in fact has created opportunities for Asian banks, a top IMF
official said Monday. International Monetary Fund's Asia directorAnoop
Singh said that if the eurozone plunged into recession, it would
definitely hurt Asia, where exports to Europe are an important driver of
growth.
"In India as in other economies demand for exports would certainly be
hit." But Singh said that in the financial sector, the weak European
banks' cutting lending in Asia has not been very damaging. "My sense so
far is that the financial effects on Asia are being contained." "So far
my sense is that there are increases in funding costs, yes, for India
and other countries, but the supply (of financing) is generally being
maintained." "We are seeing Asian banks, Indian banks stepping in where
deleveraging is taking place in European banks.
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