Mexico's Carstens: Use World Bank Funds More Widely, Maybe Europe
First Published Saturday, 21st April 2012 11:32 pm - © 2012 Dow Jones
WASHINGTON -(Dow Jones)- The exceptional economic problems experienced recently should spur policymakers to be more open-minded about the tools they have available, possibly including using World Bank funds in Europe, Bank of Mexico Governor Agustin Carstens said Saturday.
"There was this perception the World Bank should be taking care of developing countries... regretfully reconstruction of many European companies is now a requirement," Carstens said in a panel on financial stability. "I see we are not using all the instruments that could be used to recuperate the situation."
He added that the priority of any debt-stabilization program is getting countries back to markets--and that with the right policies in place this could be at a higher level than typically thought.
"With a certain macroeconomic program, buying debt at 7% becomes at bargain," he said. "We have seen it, not only in case of Latin America, that once the sweet spot is hit" markets will buy debt again.