Belgian insurer sees Congress victory as positive for reforms

June 3rd, 2009 - 7:28 pm ICT by IANS  

Brussels, June 3 (IANS) The Belgian Export Credit Agency (ONDD) said Wednesday that the landslide victory of the Congress-led United Progressive Alliance (UPA) in India is “positive news as the new government is expected to be more stable and more efficient”.
However, challenges facing the government are significant, the country’s leading overseas export credit insurer said in a monthly risk assessment report.

It lists the challenges as boosting the economy that is expected to grow by 4.5 percent in 2009. Although the government lacks fiscal room (fiscal deficit and public debt amounted to nearly 10 percent and 80 percent of the GDP in 2008 respectively); attracting more FDI, initiating pro-poor reforms, continuing liberalisation and deregulation of the economy and addressing internal and external security issues, the EuAsiaNews said citing the report.

“Thanks to its landslide victory, the UPA is able to follow its reform package without much distraction from disruptive coalition members as was the case under the former administration,” the report said.

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