Saudi Delegate: Global Financial Markets and Institutions Should Be Reformed

United Nations, June 27, SPA -- Saudi Representative to the World
Bank Abdulrahman Al-Mofadhi said that global financial markets and
institutions should be reformed to reverse the decline in global
trade and investment and to revive credit markets.

In a speech at the United Nations’ high-level meeting on the
financial crisis in the world on last Thursday evening, he said, “As
to the origins of the crisis, it is worth emphasizing that these
reflected weaknesses in financial markets exemplified by excessive
leverage and risk-taking in a lax and inadequate regulatory
environment.”

Al-Mofadhi called for a strengthened regulatory environment drawing
on “international best practices, including the risk-reducing
safeguards offered by the Islamic financing model.”

Calling the current crisis “a real development emergency” which is
“unacceptable on both moral and economic grounds,” Al-Mofadhi said
“progress toward the Millennium Development Goals must be
accelerated” and global financial institutions must be reformed.

To this end, Al-Mofadhi said the actions taken by the Group of 20 in
its two summits to date on the crisis led to meaningful agreements to
restore growth, reform financial institutions, and revive lending.

--MORE