In the Asia Europe meeting in Beijing last month, Singh said the International Monetary Fund and the World Bank must try and put in place exogenous shock facilities to provide assistance to the affected countries more quickly and in larger amounts with less service conditionalities and greater flexibility.

Earlier, in response to a question at the BIMSTEC summit joint press conference, he said, “Our message to the G-20 will be that they must do everything in their power so that the process of development particularly with regard to the implementation of MDGs (Millennium Development Goals) by developing countries is not adversely affected.”

Slowdown in developed countries would affect demand for exports, Singh said, adding “because of the financial crisis, banks and other financial institutions (in developed countries) are reluctant to lend money to the developing countries both for investment and for trade credit.”

“We are affected, though relatively less than the banking and financial sector of the developed countries,” Singh said. “Our banks are relatively well-regulated. They have adequate capital-asset ratio. Therefore, there is no danger to the health of financial system in the BIMSTEC region,” he said. with ENS