The leaders of the U.S. Federal Reserve Ben Bernanke and European Central Bank (ECB) Jean-Claude Trichet stressed in separate statements that developing economies are a key factor for global financial stability. According to Bernanke the global economy increasingly dependent on emerging markets to maintain strong domestic demand and economic and financial stability. The improvement of policies and regulatory frameworks in emerging markets has an effect beyond those economies themselves, he said. In a separate statement prepared for a press conference during a meeting of finance ministers and heads of central banks of the G-20 in South Korea at the end of this week, Trichet stated that developing economies have been a source of strength in the world financial crisis. Characteristic aspect of this crisis was that going from industrialized economies. Developing countries were also severely affected, but as a group remained the lifeblood of the global economy, Trichet said in a pre-prepared statement for the press conference. Speaking of Bernanke is also pre-recorded for the event. Bernanke gives an example South Korea, saying the government and the central bank of the country, launched after the Asian financial crisis of the late 90’s of last century, helped South Korea to resist the current crisis.
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The European Central Bank expects modest growth in the euro area economy in 2010, prospects are encased in a large uncertainty. It said the institution’s president Jean-Claude Trichet after today’s decision by the bank interest. The base rate has been kept in its record low level of 1.0 percent for the 12th consecutive month today. According to Trichet data for some individual countries are encouraging and some of the achievements that exceeded forecasts. However, the situation was still quite uncertain because of large fiscal imbalances that occur in some countries. Trichet defended the decision to distortion of the ECB for loans made as a reverence to Greece, with the explanation that the requirements of our southern neighbors were quite strict. Therefore, the central bank wanted to show their support for Athens. “Bankruptcy of Greece to me is off. Everything is simple. I do not discuss this issue and I have nothing more to say, “said Trichet, said on CNBC. Asked whether Portugal is expected to be the next victim of the crisis, will have to be saved, Trichet said that Greece and Portugal are not in the same boat. At today’s meeting of the heads of the ECB have not been discussed ideas and options to buy government bonds to help banks in the euro zone, said Trichet. This was based on market interest today, as speculation was that the ECB will strongly support the banks to fight crisis. Expression of this depreciation of the euro rose to 1,2692 EUR / USD during the Trichet press conference.
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