Food for thought...
Sunday May 24, 12:09 pm Eastern Time
Deutsche Bank sees Asian crisis spreading -Courtis
ROME, May 24 (Reuters) - The Asian economic crisis is worsening and could spread to other emerging markets, said an economist at Deutsche Bank who is also secretary of the steering committee of Indonesia's bank creditors, in a newspaper interview.
''Two days ago the Russian prime minister said that with Asia's economic slowdown triggering a decline in prices for raw materials (like oil), Russia also risks a crisis,'' Kenneth Courtis told Rome daily La Repubblica. ''In the next weeks and months, I think we'll hear a lot of other people saying the same thing.''
Courtis said that in 1996, 48 percent of the increase in world demand for automobiles came from Asia, along with 52 percent of the increase in energy demand and 57 percent of the increase in demand for telecommunications.
Courbis noted that Russia needed oil prices to remain at $18 per barrel, and that they have fallen to $12 per barrel, the article said.
When asked whether the resignation of former Indonesian president Suharto has put an end to the most acute phase of the country's crisis, he said it was ''too early to say.''
''The situation has been made more difficult by the deterioration of the real economy,'' he said.
Deutsche Bank co-chairs the steering committee of Indonesia's bank creditors and will host the next round of talks on rescheduling Indonesia's $80 billion in private sector debt in Frankfurt in the first week of June.
On the positive side, there is strong economic growth in two-thirds of the G7 countries and the U.S. Federal Reserve has the necessary margin to reduce interest rates if need be, Courtis said.
Aloha |
