Pranab hopeful of solution to euro crisis at global meet

Finance Minister Pranab Mukherjee on Sunday exuded confidence that the world leaders will be able to find a solution to the European economic crisis at the G-20 finance ministers' summit scheduled in November.

"I am expecting at the margin of the fund bank (IMF) meeting, the problem of Europe crisis, high sovereign debt and also other related issues will be discussed," he said on the sidelines of foundation day celebration of Bank of Maharashtra here.

"I am confident that when we meet again in Paris in G-20 finance minister's summit to make recommendation for the leaders of this summit, it will be possible for world leaders to work out a solution which can dissolve the crisis," he said.

The Finance Minister will be on a four-day visit to the United States beginning September 21 for the Fund-Bank meeting as well as other engagements on the sidelines.

It is expected that sovereign debt crisis, along with the fear of a double-dip recession, will be discussed among world leaders during the meeting.

World leaders are expected to make recommendations at the Summit level, which will be referred to the G20 Finance Ministers meeting in November for further action.

At present, Eurozone nations namely Greece, Italy, Portgual are facing deep debt crisis due to higher level of sovereign debt in proportion to their national GDP. Even rich economies like France and Germany are facing the risk, due to substantial amount of exposure to government bonds of these affected nations.

Economic turmoil of Europe has adverse impact on the growth prospects of emerging economies like India with subdued prospects of exports and other trading activities.

Mukherjee was speaking at the 76th Anniversary celebrations, of Bank of Maharashtra.

Speaking at the function, Mukherjee stressed on the importance of financial inclusion to drive future growth in the banking system.

"Financial inclusion is vital part of Indian banking system. We have set a target of covering 74,000 villages under banking net by March, 2012 and I am happy to say that already 29,800 villages have been covered by the end of last fiscal," he said.

“I am sure that they will cover the remaining villages by March 2012.I am also happy to note that Bank of Maharashtra has reached more than 754 villages out of the 1215 allotted to them.”

The government, he said, was aiming to transfer money to eligible beneficiaries of various government schemes through banking channel to attain financial inclusion.

"All banks should use technology to reach out to people in far-flung areas of the country," Mukherjee said.

The function was also attended by Radhakrishna Vikhe Patil, Maharashtra Agriculture and Marketing Minister, D K Mittal, Secretary, Financial Services, Ministry of Finance, Bishwajeet Bhattacharya, Additional Solicitor General.