Bank for International Settlements {BIS} warns of global economic crisis
Bank for International Settlements {BIS} warns of global economic crisis
7.2.2016 10:23
{International: Euphrates News} warned the Bank for International Settlements BIS {}, {who is described as the central bank of central banks} in the world, stopped lending to emerging economies, which played a key role in global economic growth in recent years crisis.
He said the bank manager Jim Caruana in a speech at the University of London for Economic Studies said that “stopped lending to emerging economies entered the global economy in the {vicious circle} of negative developments, such as financial market turmoil and the collapse of the value of assets and a slowdown in economic growth.” In the latest data bank began lending to economies Index emerging in the landing negatively since last September, credit and declining denominated either in the form of bonds or bank loans to countries emerging economies to $ 3.33 trillion from 3.36 trillion dollars. the Institute of international finance said last month that emerging economies countries witnessed a year out of capital dramatically {and Besav negative} for the first time since 1988, the escape of up to $ 735 billion, including during the 2015 and linking Caruana between the recent turmoil in the stock markets and slowing economic growth and significant changes in exchange rates and the collapse of commodity prices, pointing out that it is not a shock relating to each sector separately and described it as indication “,” especially in the emerging economies financial cycle is complete. Bank for international settlements estimates that about a quarter of investments now, including credit for emerging economies, going to speculate on the currency is a threat of another disaster. according to the majority of analysts’ estimates, the credit crunch is also compounded by the collapse of the value of assets funded by loans in a period of boom and financial recovery. he cites the large number of international analysts and officials example of the oil and gas sector, which Caruana described as defies economic logic with the continuation of companies to increase production despite a collapse in prices. the estimated Institute of international finance that this trend but feeds the bubble Dean tremendous in the energy sector can be a fuse of the next global crisis that will be the answers to deeper and longer than ever before. in the course of a decade of high oil prices, big energy companies issued bonds worth 1.4 trillion dollars in addition to the $ 1.6 trillion of bank debt. under the conditions of energy markets current is difficult to imagine how the industry will be able to service such a debt of up to 3 trillion Dolar.anthy
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