The best crisis : international financial institutions and Islamic countries
Author
Source
International Economic Relations from Islamic Perspectives
Publisher
Islamic Development Bank (IDB) Islamic Research and Training Institute (IRTI)
Publication Date
1992-12-31
Country of Publication
Saudi Arabia
No. of Pages
25
Main Subjects
Financial and Accounting Sciences
Islamic Studies
English Abstract
It is argued that the debt crisis has assumed its serious proportion in many Islamic countries.
It was pointed out that many developing countries are caught in vicious circles: for servicing their debts and paying interest, they have to take new loans to meet repayment schedule, i.e., transfer an ever increasing portion of their own resources, which are urgently needed for development.
The debt indicators and debt structures of Islamic countries are heterogeneous and also different compared to all developing countries: The official and concessionary nature of Islamic countries external debt has generally resulted in a relatively low debt servicing burden.
It is pointed out that most debt of Islamic countries are of long term nature.
Saudi Arabia, Kuwait, UAE and Qatar represent the major sources of these financial flows.
The author argued that the main internal causes of Islamic countries foreign debts are: Excessive consumption, ambitious development plans, state owned enterprises and capital flight and high military expenditures.
External factors (i.e.
high oil prices) are very important for increasing foreign debts.
In order to reduce the debt-burden of Islamic countries the author has, among other things, suggested a number of measures that include- (i) Reducing extreme fluctuations in exchange rates increased conversion of debt into equity, (ii) Mobilizing additional financial resources (i.e.
domestic savings) and improving the efficiency of the financial institutions, (iii) Increasing financial support from official OECD institutions and technical cooperation, iv) Increasing investments in human resources, and (vi) Maximizing borrowing for feasible productive projects and investment.
Language
English
American Psychological Association (APA)
Freyer, E.. 1992-12-31. The best crisis : international financial institutions and Islamic countries. International Economic Relations from Islamic Perspectives. , pp.175-199.Jiddah Saudi Arabia : Islamic Research and Training Institute.
https://search.emarefa.net/detail/BIM-778246
Modern Language Association (MLA)
Freyer, E.. The best crisis : international financial institutions and Islamic countries. International Economic Relations from Islamic Perspectives. Jiddah Saudi Arabia : Islamic Research and Training Institute. 1992-12-31. , pp.175-199.
https://search.emarefa.net/detail/BIM-778246
American Medical Association (AMA)
Freyer, E.. The best crisis : international financial institutions and Islamic countries. International Economic Relations from Islamic Perspectives. Jiddah Saudi Arabia : Islamic Research and Training Institute. 1992-12-31. , pp.175-199.
https://search.emarefa.net/detail/BIM-778246
Data Type
Book chapters
Notes
Includes margin notes.
Record ID
BIM-778246
