Globex Interbank, the World-leading Forex Clearing Corporation, Representative Comments on Efforts of the Fed, World Bank and International Monetary Fund (IMF)

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Globex Interbank, the world-leading Forex Clearing Corp, was interviewed recently regarding a few major topics in the World Financial Market. Globex Interbank Rep. spoke about the Federal Reserve's decision to open new reciprocal currency arrangements with Australia and Scandinavia. http://www.globexinterbank.com

A representative of Globex Interbank, the world-leading Forex Clearing Corp, was interviewed recently regarding a few major topics in the World Financial Market. He commented briefly about the efforts of the Federal Reserve, the World Bank and the IMF, in curtailing the effects of the current financial crisis.

Fed Sets $30 Billion Swap Lines With Nordics, Australia:
Globex Interbank's, the world-leading Forex Clearing Corp, Representative spoke about the Federal Reserve's decision to open new reciprocal currency arrangements with Australia and Scandinavia.

The Rep of Globex Interbank, the world-leading Forex Clearing Corp, explained that the Fed opened new swap lines in the amount of $30 billion with central banks in Australia and Scandinavia in order to boost liquidity and bring down interbank lending rates. This is in addition to $250 million in additional swap lines with other major central banks. The Fed has also said it has established temporary reciprocal currency swap lines of up to $10 billion each with the Reserve Bank of Australia and Sweden's Riksbank, and $5 billion swaps with Denmark's National Bank and Norway's Norges Bank. As a result, the European markets calmed but it was unsure what positive long-term effects this would have in the market.

It is vitally important that the central banks continue to work together in order to maintain liquidity around the world, according to the Globex Interbank, the world-leading Forex Clearing Corp, Rep. Norway and Sweden did not detail the timing of their swap injections. Central banks in Norway and Denmark said the swap line would boost their flexibility in money market operations, while the head of Sweden's authority said their move was precautionary.

The world-leading Forex Clearing Corp, Globex Interbank's Rep, explained that the future of the European market is not certain and that the agreement provides banks with additional flexibility to handle rapidly changing developments in the financial markets. Swedish Riksbank Governor said his country's financial system was stable and its banks solvent. The Governor further indicated that Sweden has been affected by the renewed wave of international financial unrest. He indicated the developments are being followed closely and they are working together with Swedish banks, market participants and government agencies. The Reserve Bank of Australia didn't comment on the currency swaps other than to repeat the Fed statement on its website. The Fed has already set up a $110 billion swap line with the European Central Bank, $60 billion with the Bank of Japan, $40 billion with the Bank of England, $27 billion with the Swiss National Bank, and $10 billion with the Bank of Canada. The Rep of Globex Interbank, the world-leading Forex Clearing Corp stated that the Fed's swaps are authorized for a limited period of time.

World Bank To Double Extent Of Loans To Poor Countries:
In addition to his statements about the Fed, the Rep of Globex Interbank, the world-leading Forex Clearing Corp, talked about the World Bank's billions earmarked for aid to Asia and Africa.

According to the rep of Globex Interbank, the world-leading Forex Clearing Corp, the credit crisis has diminished the private resources that were intended for failing economies. The World Bank is going to expand the extent of loans provided to poor countries due to the decrease in private resources that are available to those economies, reported by Nikkei Japanese newspaper. The World Bank intends to double the long-term loans for these countries, from $14 billion in 2007, to assist them in dealing with the effects of the world credit crisis.

Globex Interbank's Rep stated that this comes at the same time the IMF assists other countries affected by the credit crisis, such as Iceland and the Ukraine. The World Bank loans will be directed toward 10 poor countries in Asia and Africa, such as Ghana, Bangladesh, and Cambodia. Meanwhile the IMF will focus on emerging, medium-income economies. The World Bank will offer long-term loans for 15 to 20 years with interest rates similar to LIBOR. It was recently reported that the World Bank, in cooperation with the French Development Agency (AFD), will loan more than $900 million to China's Sichuan County to aid in their recovery from the May 12th earthquake.

INTL Monetary Fund To Aid Pakistan $7.6 Billion Loan:
Furthermore, the Rep from Globex Interbank, the world-leading Forex Clearing Corp, commented on Pakistan's request from the IMF for a $7 billion loan.

Globex Interbank's Rep explained that an agreement has been reached between the IMF and Pakistan's government regarding the $7 billion loan intended to improve the country's economic condition. Fears over Pakistan's ability to repay debt have risen recently, causing concern in the West regarding the political stability of the region.    

The rep of Globex Interbank, the world-leading Forex Clearing Corp, indicated the loan will be used for balance payments on international debt according to the Finance Minister in a televised interview in Karachi. Pakistan, a center for the war on terrorism, has been forced to request aid from the IMF after its foreign currency balance shrank by 75% in the last 12 months to $3.5 billion, an amount equal to only one month's imports. The government hopes to reduce the budget deficit to 4.3% of GDP for the fiscal year ending June 30th 2009, from 7.45% of last year. In addition, the government has promised that there will be no net borrowing in the current fiscal year by the central bank. Pakistan expects to receive the maximum amount of the loan in advance in order to meet current payments of $3.5 to $4.5 billion due in this fiscal year. Additionally, the first distribution of funds is expected this month. The IMF loan will give confidence to investors and it will help us in seeking more aid. http://www.globexinterbank.com

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