International Finance Corporation

May 6, 2013


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Then, between the weekend and yesterday, actually markets received a flurry of new actions that various governments implemented to strengthen financial markets: from the USA.UU. It was announced that mortgages will be purchased directly to banks as part of its bailout, recently approved by Congress. In Spain, the Government announced it will guarantee interbank loans for up to 100,000 million euros until the end of 2008 (although at the moment is think not recapitalize the banks), Germany adopted a rescue package for national banks by a total of 480,000 million euros, this being, the largest program of aid since the end of World War II. The French State also announced that it will provide a guarantee for deposits of up to 320,000 million euros and will allocate a maximum of 40 billion euros to banks in trouble, while England announced that it will use US $64,000 billion for the rescue of three of the largest of its financial system entities. And ads not ended here, but that other countries were announced similar decisions, as it is the case in Italy and Russia. If the above was insufficient, the European Central Bank (ECB) and the American Federal Reserve (Fed) announced that major central banks in Europe may provide an unlimited amount of dollars to money markets in the region.

International agencies have also put hands to work and announced measures to intervene in the crisis. The President of the World Bank, Robert Zoellick, announced yesterday that the institution was studying the possibility of creating a fund to recapitalize banks in difficulties in developing countries, through the International Finance Corporation (IFC) while the International Monetary Fund confirmed that it has put at the disposal of member countries reservations almost US $250,000 million to respond to the financial crisis. No doubt that Governments and international agencies have decided to use all the available artillery to put a brake to the turbulence in the financial markets.