Economic Commentary: Financial turbulence – light at the end of the tunnel after weekend meeting in Washington

Date 13/10/2008

The fact that the world’s finance ministers and central bank governors were able to agree at the weekend on a five-point plan to restore confidence in the financial markets is a major success. All of the member countries of the International Monetary Fund have agreed to use every available means to support systemically-important banks and financial institutions. All of the governments and central banks have committed themselves to ensuring that banks and other financial companies have access to both long-term and short-term credit. In addition, the governments and central banks will ensure that banks and other financial companies have the capital necessary to enable lending to companies and households and thereby recreate confidence.