The president of the Inter-American Development Bank (IDB), Ilan Goldfajn, emphasized this Wednesday after the bankruptcy of the Silicon Valley Bank (SVB) that Latin America has a “highly resilient” financial system and believes it is prepared for possible negative effects in the region.
“We understand that we are in a region with a very resilient financial system (…) that has been well overseen in recent years. The truth is that the region has set a very good example of how the financial system is managed, Goldfajn stated at a press conference ahead of the IDB’s annual meeting.
The president of the organization noted that it is necessary to “see in the coming weeks” how the situation evolves after the fall of the SVB, but expressed some optimism about the possible consequences in Latin America.
“I imagine we are prepared in the region for what is to come, which is no surprise,” he stressed.
Goldfajn also acknowledged that the issue is likely to be addressed at the organization’s annual meeting to be held this weekend in the Panamanian capital.
“I can’t tell you what the governors are going to talk about, but I’m sure they’re going to talk about the situation, including the last one,” Goldfajn said.
In the meeting, Goldajn added: “We have a session where macroeconomic issues are discussed and they relate to everything, growth, social issues, but also inflation, the cost of money and what is going to happen , with the risks that exist”.
Economic and financial leaders – ministers or other economic authorities – are expected to participate in the annual meeting of the IDB, especially from Latin America and the Caribbean, but also from the rest of the countries that are part of the development bank, which together account for a total of 48.
The sudden collapse of Silicon Valley Bank, one of the largest bank failures in US history, has raised doubts about the health of the sector and fears of a new financial crisis.
Source: El heraldo
Roy Brown is a renowned economist and author at The Nation View. He has a deep understanding of the global economy and its intricacies. He writes about a wide range of economic topics, including monetary policy, fiscal policy, international trade, and labor markets.
