FSF Focuses on Latin American Challenges
Despite increasing signs of growth in the Latin American economies, the region continues to face vulnerabilities, according to a recent Financial Stability Forum (FSF) convention in the region. Participants considered the strengths and vulnerabilities in international and regional financial systems and concluded that the economies in the Latin American region were generally showing signs of a recovery of growth, reflecting policy improvements among other factors. The FSF also considered the sustainability of current and expected levels of public debt, and highlighted the need to manage debt in such a way as to reduce the impact of market shocks. A continuation of favourable financial and economic conditions should be used to improve fiscal positions, said the FSF. Discussions also focused on reforms already implemented and those still needed to enhance domestic securities markets, in order to facilitate public sector debt management and to provide alternative sources of funding and risk management for the private sector.