FM reviews global fin crisis with key heads, experts

Finance Minister P Chidambaram today met key regulators and policy makers to review the impact of the global financial crisis on the country and measures to tackle it.

The meeting, which took place at the North Block office of the Finance Minister, was attended by top economists, including RBI Governor D Subbarao, RBI Deputy Governor Rakesh Mohan, plan panel Deputy Chairman Montek Singh Ahluwalia and SEBI Chairman C B Bhave.

Coming out of the meeting, former chief of PM's Economic Advisory Council C Rangarajan said they deliberated on the international financial crisis and its implications for emerging economies.

The meeting, he said, also discussed the stance that India may take at the Summit on 'Financial Market and the World Economy' convened by the US at Washington on November 15.

Among other things, the G20 Summit will discuss the effects of the current crisis on emerging economies and developed nations.

Besides, 13th Finance Commission Chairman Vijay Kelkar, former RBI Governor Bimal Jalan, Finance Secretary Arun Ramanathan, Department of Economic Affairs Secretary Ashok Chawla, and other officials were present at the meeting.

The global financial meltdown triggered by the sub-prime mortgage crisis in the US has already resulted in the failure of 16 banks in the US and rescue of several others in Europe.

The ripple effects of this crisis are being felt in the emerging economies, including India, which has been witnessing a liquidity crunch, besides sharp erosion in value of stocks at bourses. MORE PTI IND MG TAN DP CS