Development institutions are looking at providing aid to banks in political crisis-hit Middle East and North Africa, an International Finance Corp. official said Friday (March 11).
“We’re at a very early stage of putting together an action plan to support countries in the Middle East and North Africa,” Rashad Kaldany, a vice president at IFC, told Reuters.
“We don’t have numbers at this stage, we don’t know what exactly we’re going to be focusing on, but clearly we will work as a group of institutions to see how we can help,” he added.
IFC and other development institutions have raised concern that the political unrest in the Arab world may be preventing local banks from obtaining adequate capital.
Kaldany said a recently completed €33 billion ($45 billion) support program for Eastern Europe-based banks affected by the global financial crisis could be used as a blueprint for assisting banks elsewhere.
The program, which was backed by IFC, the European Bank for Reconstruction and Development and the European Investment Bank, provided much-needed capital and bolstered confidence in Eastern Europe’s banking sector.
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