The Hindu Business Line : IMF regional training centre to be set up in NIBM campus

THE National Institute of Bank Management (NIBM) here is all set to have in its campus the Regional Training Centre of the International Monetary Fund.

The approval for the setting up of the training centre has been obtained from the Reserve Bank of India, the Central Government and IMF Board, said Dr Y.V. Reddy, RBI Governor and Chairman of the NIBM Governing Board, here on Thursday. He said the details of the centre were being worked out. The centre would initially cater to India and then to the South East Asian regions and later on to East Africa. He was in the city for the annual day celebration of NIBM.

Deflecting questions from the media about the fluctuations in the stock market, post-tsunami, Dr Reddy noted that there was some fall in the equity and in the money markets. "But there is no cause for worry as there has not been any serious impact on the money market or even the Government securities. Only in the foreign exchange there was some movement but that is also of no concern as it is due to the appreciation of the dollar," he pointed out.

Dr Reddy said that the RBI has taken a three-track approach to the tsunami problem - monitoring the financial markets, making relief measures available and monitoring its economic impact.

The RBI was directly in touch with 41 bank branches and had already put in place a number of processes to take care of any problems that might crop up. The only factor that he would like to emphasise is the fact that there was no cause for worry.

Dr Reddy said the insurance sector would have to take the brunt of tsunami but the sector was capable of absorbing the entire impact. The only avenue where investment would have to be brought in is the relief and rehabilitation of the affected and this was likely to make a dent in the State exchequer, he said.

Asked whether there would be increase in the foreign borrowings, Dr Reddy was emphatic that there was no such thing on the agenda.

He said that unless it came to a very bad situation, there was no reason for any increase in the borrowing programme. Exports might suffer for a limited period as the ports of Indonesia and Sri Lanka had suffered the maximum.

He pointed out that the worst affected port of Chennai had also been able to get its operations back to normal within a couple of days while adding that everything was being done to ensure that there was no cause for worry.

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