Asian countries are enjoying some of their best years after the East Asian crisis. But a top IMF official says the party might end quickly if emerging economies dont continue to strengthen their financial sector.
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ldblquote Perhaps the most urgent need is the further strengthening of the financial sector. In many countries, banks and companies are still struggling with weak balance sheets.
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This weakness undermines growth opportunities.
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It is no coincidence that those countries that have been more aggressive in the area of financial sector reform have enjoyed better growth performance, dblquote says Dr Anne Krueger, the First Deputy Managing Director of the IMF.
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rnAddressing participants at the 39 SEACEN Governors Conference in Colombo, Krueger say in addition to a healthy financial sector, a vibrant corporate sector is also vital for a countrys stability. rn
rnldblquote The two are more closely related than is often recognised. A weak financial sector cannot be nursed back to health if correspond