Signs of economic recovery, says top Canadian bank CEO

March 25th, 2009 - 10:38 am ICT by IANS  

Vancouver, March 25 (IANS) The head of Canada’s top bank said Tuesday the global financial system seems to have begun stabilizing even as the country’s finance minister urged more governments to follow the US in buying toxic assets from banks.
Speaking in Vancouver, Richard Waugh, CEO of Scotiabank, said that the global economic recovery may begin as early as the end of this year as markets are showing signs of stabilsing.

He said bond markets seemed already in the recovery mode and equity markets could follow soon.

Waugh said the stabilization of global markets will lead to the stabilization of economies.

The head of Canada’s most international bank said government bailouts will be effective only once markets stabilize and consumer confidence is restored.

Meanwhile, Canadian Finance Minister Jim Flaherty said Tuesday that Europe should follow the US example to buy billions of dollars of toxic assets from banks to ensure early economic recovery.

“The most important thing that had to happen internationally and in the United States is to fix the banks, to cleanse the banks of these bad debts, so called toxic assets,” the finance minister said in a TV interview.

“That has to happen, so the provision of details yesterday by President (Barack) Obama and Secretary Geithner is very important moving forward. More needs to be done in Europe on cleansing the banks. That’s what had to happen for stimulus to be effective, for economies globally to start to recover,” Flaherty said.

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