The Islamic Post Blog

Guyana To Build ‘Firewall’ To Cushion Impacts Of Financial Crisis by Khalida
December 1, 2008, 12:40 am
Filed under: December Volume 1 - 2008 | Tags:

GEORGETOWN, Guyana: Guyana is considering building a ‘firewall’ to cushion the crushing impact of the current world financial crisis and is seeking an urgent Caribbean Community (CARICOM) Summit to craft a regional response, President Bharrat Jagdeo announced on Wednesday.
“This is going to spread like wildfire,” President Jagdeo said as he summoned a news conference following his trip to Europe, China and New York.
According to a Guyana Chronicle report, the President said that the international crisis was not limited to the financial markets, but would impact on the rest of the economy.
The Guyana leader, who is also an economist, said that the local banking system was “isolated from the impact because banks here were not investing heavily in the world markets reeling from the freefall.” He added that the banking system here remained sound and depositors’ funds should be safe.
He said also that insurance companies had assured him that they were also not affected and would be able to pay out policies to policy holders.
“The worry for developing countries like Guyana is that major international banks have frozen credit, investors that look to these to raise funds may not be able to pursue their schemes,” Guyana’s president told The Chronicle. “These include the Russian giant bauxite company RUSAL and the firms considering investing in the major hydro-power in the hinterland.”
He added, “Once credit dries up it affects everything else.”
The Guyana leader said that investment inflows and remittances from Guyanese abroad may also be reduced because of the crisis that could lead to massive layoffs in the United States and other developed countries.
Resulting falling world market prices for Guyana’s main export commodities, including wood products were an additional concern, he added.
He told newsmen that he had asked CARICOM Chairman and Antigua and Barbuda Prime Minster, Baldwin Spencer to convene a special summit of the grouping’s leaders to discuss the implications and responses. -Caribbean Net News


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