Arab Credit Rating Institution Inception Pivotal to Face Global Hegemony
The Arab Spring countries are in a dire need for a bona fide Marshall Plan in order to overcome their current economic crises, said the General Manager of the Libyan Foreign Bank (LFB) Mr. Mohamed M. Ben Yousef. He urged the inception of an Arab institution in charge of credit ratings to relieve the global hegemony.
The economic crises experienced by the Arab Spring countries have contributed to an increase in unemployment rates to 23%; whereas the volume of investments have massively shrunk, Mr. Ben Yousef noted.
The LFB general manager has issued a working plan entitled “Arab Banks’ Role in the Light of the Economic, Financial, and Social Challenges Faced by the Region”, saying that the Arab countries have failed to build up a regional economic bloc in spite of having all the necessary financial and manpower resources as well as the investments potentials.
In the Arab region, the volume of the two-way investments have not exceeded 30% of the total investments made in the region over the last 30 years, Mr. Ben Yousef added.
On the sidelines of the two-day Annual Arab Banking Conference 2013 held in Beirut under the title of “Economic Implications of Arab Transitions: Reforms and Role of Banks”, Mr. Ben Yousef remade his proposal concerning the inception of the Arab Bank for Africa and Middle East Development. The bank is set to be funded by the oil-exporting countries so as to finance the SMEs.
Moreover, Mr. Ben Yousef has underscored the importance of having a coordination between the Arab governments to finance the two-way investments and the central banks to facilitate the funding processes and encourage having partnerships between the private and public sectors, seeking to bring about the Arab economic integration.
The LFB general manager also called on the establishment of an Arab institution for credit ratings hailed from the Arab banks, aiming to reduce the complete reliance on the global institutions. He said the suggested Arab institution shall set local and regional standards by which the Arab banks shall work.
