Solution to Euro debt woes not enough, says FM

Solution to Euro debt woes not enough, says FM

He also sought better coordination between monetary and fiscal policies for improving overall economic stability and growth, specially in the wake of present global economic developments.

“In recent times, global financial markets have been troubled by perceptions of inadequate solutions to the Euro area sovereign debt problem, exposure of banks to Euro area and renewed fears of recession,” Mukherjee said at a function to commemorate Viajaya Bank’s its 81st Foundation day, which today opened 40 branches and 80 ATMs spread across the country taking the total number of branches to 1240 and ATMs to 643.

“The opening of four urban micro finance branches and adoption of  8 villages for providing basic amenities to the villagers alongwith opening of  8 rural health care centres exhibits the efforts of Vijaya Bank in taking banking service to rural and unbanked areas,” he said.

In a reference to United States, Mukherjee Said, “global recovery will also be affected by some of the fiscal consolidation measures being taken by some advanced economies.”
A build up of sovereign debt and concerns regarding medium to long term plans of fiscal adjustment are creating global uncertainties.

Also excessive liquidity from policy actions in developed world to stabilize their economies has been spilling into emerging markets fostering excessive volatility in capital flows and commodity prices, analysts say.

Rupee breached Rs 50 to a dollar early Friday making imports especially crude oil costlier, fanning fears of higher inflation and widening of the subsidy bill of the cash-strapped government.

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