GCC finance ministers discuss plan for Europe-style bank
Sunday, October 18, 2009
Finance ministers of the world's largest oil exporting region discussed a proposal for a regional development bank similar to Europe's, the Gulf Co-operation Council (GCC) executive said.Finance ministers and central bank governors from six Gulf nations, which form the GCC, met in Muscat yesterday to set the agenda for the Rulers' summit in Kuwait next month.
Finance ministers of the world's largest oil exporting region discussed a proposal for a regional development bank similar to Europe's, the Gulf Co-operation Council (GCC) executive said.Finance ministers and central bank governors from six Gulf nations, which form the GCC, met in Muscat yesterday to set the agenda for the Rulers' summit in Kuwait next month.
GCC Secretary-General Abdulrahman Al Attiyah told reporters that they discussed the Qatar's vision of a mechanism for the proposal for an investment and development bank like the one in the EU. The bank would provide funding for regional projects and would also make donations outside of the GCC, Attiyah said.
"Before, the countries did it individually, now they will do it together," he said. Nothing had yet been decided as to the capital of the proposed bank, Attiyah said, although ministers would look into this.
The European Bank for Reconstruction and Development (EBRD) was established in 1991 to help former Communist and Soviet countries move towards market economies, and lends to commercial entities. The bank is controlled by more than 60 shareholder members, including European Union members, the United States and Japan.
The European Investment Bank is the European Union's long-term lending institution. Al Attiyah said he was confident the four Gulf countries would have a monetary council – a step towards a single currency – in place by next January.
When asked if the monetary council would be in place by January 1, 2010, GCC Secretary General Abdulrahman Al Attiyah told reporters: "Of course."
A series of political disagreements have held up talks for almost a decade.Ratification by four countries is needed for the project to go ahead, but so far only Saudi Arabia has done so. Bahrain, Qatar and Kuwait have not yet ratified, leaving question marks over the future of the project."Ratification is on the way," he said, adding he expected Qatar to ratify next week.
Attiyah also said GCC ministers are working to accelerate the region's economic integration."[Ministers] will be working on the acceleration of economic integration of the GCC countries... weighing up the obstacles," he said.
He added issues covered would include a customs and monetary union, a common market, and a joint railway project.
However, Darwish Ismail Al Balushi, secretary general in the Oman finance ministry, said Gulf states who have yet to ratify an agreement on a single currency for the region are being called upon to do so by the end of this year.
The GCC countries have asked those who have not ratified the single currency to do so by the end of the year," Al Balushi said.Ratification by four countries is needed for the project to go ahead.
